The US Bankruptcy Court gave an order to Pegasus Home Fashions, Inc. to obtain DIP financing on a final basis on November 17, 2023. As per the order, the debtor has been authorized to obtain a super priority senior secured multiple-draw term loans in an amount of $118.63 million from Blue Torch Finance, LLC acting as agent. The new money DIP loans will bear interest at either of 10% pa or if agreed by the DIP lenders in their sole discretion, adjusted term SOFR plus a margin of 11% pa, which, in each case, shall be payable in kind and capitalized.

The roll-up loans will bear interest at the reference rate plus a margin of 10% pa, which shall be payable in kind and capitalized, along with an additional 2% p.a. interest in the event of default. The DIP facility would mature either on November 27, 2023, or if such day is not a business day, the preceding business day, (b) the effective date of a plan of reorganization that has been confirmed by an order of the bankruptcy court, 23 days after the bankruptcy court?s entry of the interim order unless, 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.