The US Bankruptcy Court gave an order to Avaya Inc. to obtain DIP financing on an interim basis on January 23, 2017. As per the order, the debtor has been authorized to obtain a revolving credit facility in the amount of $425 million out of a total commitment of $725 million from Citibank, N.A., Citigroup Global Markets Inc., Barclays Bank PLC and Deutsche Bank Securities with Citibank, N.A. acting as the administrative agent. The DIP loan would either carry an interest rate of LIBOR plus 7.5% p.a., with a LIBOR floor of 1% p.a., or an alternate base rate plus 6.5% p.a., along with an additional 2% p.a. interest in the event of default. As per the terms of the DIP agreement, the loan carries an original issue discount of 1%. The DIP facility would mature either 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 $20.38 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral. The proceeds from the DIP facility shall be used for Working capital and general corporate purposes.