Knotel secures final court approval of $40.8 million DIP financing

By Sarah Lizee

Olympia, Wash., March 3 – Knotel, Inc. received court approval to access a $40.8 million debtor-in-possession financing package via Newmark Group, Inc., according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.

The DIP financing includes a $20.4 million new money commitment and a roll-up of $20.4 million of pre-petition secured debt.

The facility will mature on the earliest of three months from the closing date, the date a sale of the debtors’ assets closes and the date of acceleration of the DIP loans.

Interest is 12% per annum.

The company also secured final court approval to use the cash collateral of the Newmark affiliate.

New York-based Knotel operates a flexible workspace platform that matches, tailors and manages space for customers. The company filed bankruptcy on Jan. 31 under Chapter 11 case number 21-10146.

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