The US Bankruptcy Court gave an order to NewAge, Inc. to obtain DIP financing on final basis on September 30, 2022. As per the order, the debtor has been authorized to obtain term loan credit facility in the amount of $16 million from DIP Financing, LLC. The DIP loan would carry an interest rate of 11.5% p.a., 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 funding fee of 2% p.a. The DIP facility would mature either on 90 days after the petition date, i.e., November 28, 2022, 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 $0.20 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral. The lender is represented by Steven M. Berman of Shumaker, Loop & Kendrick, LLP as legal counsel.

The proceeds of the DIP financing shall be used to fund operating expenses and administrative expenses of the chapter 11 cases.