The US Bankruptcy Court gave an order McDermott Technology (Americas), Inc., McDermott Technology (US), Inc., and McDermott Technology, B.V. to obtain DIP financing on a final basis on February 24, 2020. As per the order, the debtor has been authorized to obtain a new term loan facility in the amount of $2.07 billion and letter of credit facility in the amount of $743 million, i.e., $2.81 billion in total, with Barclays Bank PLC acting as the administrative agent for term loan facility and Crédit Agricole Corporate and Investment Bank as administrative agent for letter of credit facility. The DIP term loan facility would carry an interest rate of base rate plus 8% p.a., for base rate loans and Eurodollar rate plus 9% p.a. for Eurodollar rate loans. DIP LC facility would carry an interest rate of 9% p.a. on the daily maximum amount available to draw, along with an additional 2% p.a. interest in the event of default. As per the terms of the DIP agreement, the letter of credit facility carries an unused commitment fee of 0.5% p.a., upfront fee of 2.25% and backstop fee of 2.25% of the entire commitment amount. The debtors shall pay the DIP letter of credit agent a fronting fee of 0.50%. The DIP facility would mature either on October 18, 2020 or on the effective date of the plan or on acceleration of the DIP term loans and DIP letters of credit following the occurrence of an event of default, 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 $1 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral. The proceeds of the term loans are being used to pay certain costs, fees, interest, payments and expenses related to the case and to fund working capital. The proceeds of letter of credit are used to support warranties, bid bonds, payment or performance of obligations.