The US Bankruptcy Court gave an order to Orbital Infrastructure Group, Inc., to obtain DIP financing on an interim basis on August 25, 2023. As per the order, the debtor has been authorized to obtain a term loan facility in the amount of $7.5 million out of it $2.50 million on interim basis from Streeterville Capital, LLC with Alter Domus (US) LLC acting as the administrative agent. The DIP loan would either carry an interest rate of 10% p.a., along with an additional 2% p.a. interest in the event of default.

The DIP facility would mature either on November 30, 2023, 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 towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral. The lender is represented by Brian M. Rothschild and Simeon J. Brown of Parsons Behle & Latimer as its legal advisor.

The final hearing is scheduled for September 20, 2023.