The US Bankruptcy Court gave an order to Altera Infrastructure L.P., to obtain DIP financing on final basis on October 7, 2022. As per the order, the debtor has been authorized to obtain a DIP loan facility in the amount of $70 million from Brookfield TK Loan 2 L.P and Brookfield TK Loan 3 L.P. The DIP loan would either carry an interest rate of SOFR plus 11% p.a. As per the terms of the DIP agreement, the loan carries a commitment fee of 1.5% p.a. and an exit fee of 1.50% of the aggregate amount of the DIP commitments. The DIP facility would mature either on December 10, 2022, or on the effective date of the plan or on the date of consummation of the sale of substantially all assets or the date of acceleration or termination of the DIP facility in accordance with the DIP credit agreement or dismissal of the chapter 11 cases or conversion of the chapter 11 cases into cases under chapter 7 of the bankruptcy code or September 26, 2022 or such later date as agreed by the required lenders unless the final order has been entered, 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 $0.10 million incurred by a trustee and $7.50 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 shall be used to roll up $20 million of the outstanding principal balance under the IntermediateCo RCF, for the Debtors' working capital needs, including to fund the costs of the administration of the chapter 11 cases and to pay adequate protection payments, to pay professional fees and expenses, and to pay obligations arising from or related to the carve out.