The company was is in default of a covenant in their credit agreement. It was not a payment default- its referred to as a technical default. It is probably related to some ratio or related to the late filing of the 10Q.
In these circumstances, the lender would have a right to put them in actual default and, in theory, could accelerate the loan. That almost never happens with technical defaults.
Instead, the bank agreed to forebear (waive its rights under the loan agreement) in exchange for MLNK agreeing to paying them some fees and reducing the credit limit.
I just read it quickly so some facts could be off, but I think that's the jist. I doubt it will impact the stock.
I didn't see that the filing specified where the violation occurred- only that there was a covenant violation.
I'm sure a delayed 10Q filing would be a covenant violation so that's a good guess. I would also guess there is broad language covering the integrity and reliability of financial statements- which we now know doesn't exist due to the restatement. I would think a lender could accelerate a loan based upon that as well.
I haven't checked in a while, but I don't think MLNK is carrying any debt- either long term or bank debt. If that's correct, all this does is increase their cost for their bank line of credit and reduces their limit. It isn't material since I doubt they planned on using it anyway.
the lender is just protecting itself until the accounting problems are cleared up.