NewAge secures final approval of $16 million DIP financing

By Sarah Lizee

Olympia, Wash., Sept. 30 – NewAge, Inc. received final approval of a $16 million debtor-in-possession facility, according to an order filed with the U.S. Bankruptcy Court for the District of Delaware.

As part of the debtors’ marketing efforts to sell substantially all of their assets, they began negotiations with John Wadsworth, who has worked as an independent sales representative of the NewAge enterprise since 1998, as previously reported.

NewAge noted that Wadsworth has never been a director or officer of any debtor and has less than 0.4% of the outstanding shares of debtor NA, Inc.

Wadsworth is a principal of DIP Financing, LLC, which is serving as stalking horse bidder for the company’s assets, as well as lender on the DIP senior secured term loan agreement.

The DIP facility bears interest at 11.5% and includes a 2% funding fee. The facility is set to mature in 90 days.

The Midvale, Utah-based direct-to-consumer organic and healthy products company filed bankruptcy on Aug. 30 under Chapter 11 case number 22-10819.

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