The US Bankruptcy Court gave an order to Winc, Inc., to obtain DIP financing on an interim basis on December 7, 2022. As per the order, the debtor has been authorized to obtain a term loan facility in the total amount of $5 million out of it $2 million on interim basis from Project Crush Acquisition Corp LLC. The DIP Loan will bear interest at a fixed rate per annum equal to 14.00%, accruing monthly, payable in arrears and payable in kind, along with an additional 2% p.a. interest in the event of default.

As per the terms of the DIP agreement, the loan carries a closing fee equal to 2 % on the entire DIP commitments. The DIP facility would mature either on January 20, 2023; if the final order has not been entered, 28 calendar days after the petition 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 $0.10 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral.

The final hearing is scheduled for December 28, 2022. The lender is represented by Cooley LLP and Morris, Nichols, Arsht & Tunnell LLP as its legal counsel. The proceeds of the DIP financing will be used to pay working capital and for other general corporate purposes of the debtors, fund the costs of the administration of the chapter 11 cases and the section 363 sale process, and fund interest, fees, and other payments contemplated in respect of the DIP Facility and consensual use of cash collateral.