The US Bankruptcy Court gave an order to Tix Corporation to obtain DIP financing on an interim basis on November 4, 2021. As per the order, the debtor has been authorized to obtain a secured credit facility in the amount of $0.31 million out of the total financing of $0.83 million from FDI DIP Lender, LLC. The DIP loan would not carry any interest rate until there is an event of default.

Immediately upon the occurrence of an event of default, obligations shall bear interest at 6% p.a. As per the terms of the DIP agreement, the loan carries a lender expense of $0.03 million. The DIP facility would mature either on January 31, 2022, or the date of the acceleration of any outstanding credit extensions or entry of an order reversing in any respect either of the financing orders or the conversion of any of the chapter 11 cases to a case under chapter 7 or the appointment of a chapter 11 trustee or an examiner with special powers or the dismissal of any of the chapter 11 cases, 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 $0.05 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor's collateral.

Final hearing is scheduled on December 7, 2021. The proceeds of the DIP financing will be used to pay costs, expenses and fees in connection with the preparation, negotiation, execution and delivery of the DIP credit agreement and the other DIP financing agreements, for general operating and working capital purposes in the ordinary course of business, for the payment of transaction expenses, for the payment of fees, expenses and costs incurred in connection with the chapter 11 cases, and other proper corporate purposes of debtors.