The US Bankruptcy Court gave an order to PARTS iD, Inc. to obtain DIP financing on an interim basis on December 29, 2023. As per the order, the debtor has been authorized to obtain a term loan facility in the amount of $4 million out of $12 million from Fifth Star, Inc. with Fifth Star, Inc. acting as the administrative agent. The DIP loan would carry an interest rate of 15% p.a., along with an additional 3% p.a. interest in the event of default.

As per the terms of the DIP agreement, the loan carries a unused line fees of 1.5% p.a. The DIP facility would mature either on the scheduled maturity date 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 of $0.05 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 January 17, 2024.