The US Bankruptcy Court gave an order to Tuesday Morning Corporation to obtain DIP financing on an interim basis on February 16, 2023. As per the order, the debtor has been authorized to obtain a term loan in the amount of $25 million out of $51.50 million from Cantor Fitzgerald Securities with Cantor Fitzgerald Securities acting as the DIP agent. Invictus Special Situations Master I, L.P. will act as backstop lender.

The DIP new money loan would either carry an interest rate of 12.75% p.a. and roll-up loans of 10%, along with an additional 5% p.a. interest in the event of default. As per the terms of the DIP agreement, the DIP new money loan carries a commitment fee of 3% p.a., backstop fee of 7% of the aggregate commitment, due and payable in full on the closing date, exit fee of 5% and dip agent fees of $168,750. The DIP facility would mature either on termination declaration cate; provided that the debtors shall be authorized to use cash collateral following delivery of a termination declaration solely to the extent set forth in this interim order or on August 15, 2023, 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 $0.05 million towards clerk of the Court and to the U.S. Trustee and $2 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral. The final hearing shall be scheduled for March 2, 2023. The proceeds of DIP financing shall used to pay certain costs, fees, and expenses related to the cases and to fund the working capital needs and expenditures of the Debtors during the cases.