The US Bankruptcy Court gave an order to Crumbs Bake Shop, Inc. to obtain DIP financing on a final basis on August 5, 2014. As per the order, the debtor has been authorized to obtain a term loan in the amount of $1.13 million from Lemonis Fischer Acquisition Company, LLC. The DIP loan would carry an interest rate of 7% p.a., along with an additional 2% p.a. interest in the event of default.

The DIP facility would mature either on September 8, 2014 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.