The US Bankruptcy Court gave an order to Enjoy Technology, Inc. to obtain DIP financing on final basis on July 26, 2022. As per the order, the debtor has been authorized to obtain a DIP loan facility with total amount of up to $55 million from Asurion, LLC. The DIP loan would either carry an interest rate of 12% p.a. accruing monthly, payable in arrears and payable in kind, along with an additional 2% p.a. interest in the event of default.

As per the terms of the DIP agreement, the loan carries a closing fee of 2.0% of the entire DIP commitments, which shall be payable in kind on the closing date to the DIP lender and termination fee of 4% of the rapid amount. The DIP facility would mature either on September 30, 2022, if the Final DIP Order has not been entered, 21 calendar days after the Petition Date, or on the effective date of the plan or on the date of consummation of the sale of substantially all assets, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to a carve-out of $0.50 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral.

The proceeds of DIP financing would be used to fund working capital and for other general corporate purposes of the debtors, fund the costs of the administration of the chapter 11 cases and the section 363 sale processes, and fund interest, fees, and other payments contemplated in respect of the DIP facility.