The US Bankruptcy Court gave an order to Global Eagle Entertainment Inc. to obtain DIP financing on a final basis on August 18, 2020. As per the order, the debtor has been authorized to obtain a senior secured term loan in the amount of $80 million from DIP lenders with Citibank, N.A. acting as the administrative agent. The DIP loan would either carry an interest rate of Eurocurrency Rate plus 10% p.a., with Eurocurrency Rate of not less than 1.25% p.a., or an alternate base rate plus 9% p.a., with base Rate of not less than 2.25% p.a., 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 backstop fee of 5% p.a. and upfront payment fee of 3% p.a. The DIP facility would mature either on December 22, 2020 or the date on which the Obligations become due and payable pursuant to this Agreement or on the first Business Day on which the Interim Order expires by its term or is terminated, unless the Final Order has been entered and become effective prior thereto or conversion of any of the Chapter 11 Cases to a case under Chapter 7 of the Bankruptcy Code unless otherwise consented to by the DIP Agent or dismissal of any of the Chapter 11 Cases, unless otherwise consented to in writing by the DIP Agent or the Final Order is vacated, terminated, rescinded, revoked, declared null and void or otherwise ceases to be in full force and effect or on the effective date of the plan or on the date of consummation of the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 $3.5 million towards unpaid professional fees / administrative expenses and first priority lien upon and security interest in the debtor’s collateral.