The US Bankruptcy Court gave an order to WeWork Inc. to obtain DIP financing on an final basis on May 30, 2024. As per the order, the debtor has been authorized to obtain a revolving credit facility in the amount of $450 million from lenders with Acquiom Agency Services LLC and Seaport Loan Products LLC acting as the administrative agent.. The DIP loan would carry an interest rate of ABR loan of of 9.0%, or Term SOFR Loan rate of 10.0%, along with an additional 2% p.a. interest in the event of default.

The DIP facility would mature either on February 8, 2025 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 $20 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor?s collateral.