The US Bankruptcy Court gave an order to Tuesday Morning Corporation to obtain DIP financing on a final basis on April 6, 2023. As per the order, the debtor has been authorized to obtain a revolving credit facility in the amount of $12.50 million from 1903 Partners, LLC with 1903P Loan Agent, LLC acting as the administrative agent. The DIP loan would carry an interest rate of SOFR plus 11% p.a., with a SOFR floor of 2% p.a., or an alternate base rate plus 4.5% p.a. The DIP facility would mature either on June 30, 2023, or if the final financing order is not entered within 35 calendar days after the closing date or on the date of consummation of the sale of substantially all assets or upon entry of an order confirming any plan of reorganization, 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 $1.0 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral. The proceeds of the DIP financing shall be used repay certain obligations under the prepetition ABL credit facility, fund cash collateralization of the prepetition LC obligations owed to Wells Fargo Bank, N.A., fund general working capital and fund operational expenses and restructuring expenses.