The US Bankruptcy Court gave an order to Pier 1 Imports (U.S.), Inc. to obtain DIP financing on an interim basis on February 18, 2020. As per the order, the debtor has been authorized to obtain a Senior Credit Facility in the amount of $256.22 million consisting revolving credit facility in the amount of $200 million which shall include a $60 million sublimit for the issuance of letters of credit, $15 million First In, Last Out term loan equally from Bank of America, N.A. and Wells Fargo Bank, National Association and ABL loan of $41.22 million from Pathlight Capital LP with Bank of America, N.A. acting as the administrative agent. The Revolving Loans would either carry an interest rate of LIBOR plus 3% p.a., with a LIBOR floor of 1% p.a., or prime rate plus 2% p.a., the FILO loans would either carry an interest rate of LIBOR plus 4.5% p.a., with a LIBOR floor of 1% p.a., or prime rate plus 3.5% p.a. LIBOR loans shall be limited to an interest period of one month, and the ABL Term Loans would either carry an interest rate of LIBOR plus 8% p.a., with a LIBOR floor of 1% p.a., or prime rate plus 7% p.a., along with an additional 2% p.a. interest in the event of default. The DIP facility would mature either in August, 2020 or on the effective date of the plan or the date of consummation of a sale or disposition of all or substantially all of the Debtors’ working capital assets or on the date on which any Agent is granted relief from the automatic stay or the stay granted in the Canadian Recognition Proceedings or on the first Business Day on which the Interim Order or the Canadian Interim DIP Recognition Order expire by their terms or is terminated, unless the Final Order or Canadian Final DIP Recognition Order, as applicable, has been entered and become effective prior thereto or on conversion of any of the Cases to a case under Chapter 7 of the Bankruptcy Code or on dismissal of any of the Bankruptcy Cases, 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 and $0.1 million towards administrative expenses and first priority lien upon and security interest in the debtor’s collateral. The final hearing shall be held on March 13, 2020.