The US Bankruptcy Court gave an order to Whitestone Uptown Tower, LLC to obtain DIP financing on a final basis on June 5, 2024. As per the order, the debtor has been authorized to obtain term loan facility in the amount of $1.50 million from American Bank, N.A. The DIP loan would either carry an interest rate of prime rate plus 4.5% p.a., along with an additional 4.75% p.a. interest in the event of default. As per the terms of the DIP agreement, the loan carries a commitment fee of 3% p.a., an underwriting fee of 1% of the commitment amount of the DIP Loan, and a non-fundable deposit fee of $26,000.00.

The DIP facility would mature either on six months after the closing date, with two optional three-month extensions. 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.