Item 1.01 Entry into a Material Definitive Agreement.
As previously disclosed, the Company is in default of the terms of that certain Amended and Restated Credit and Guaranty Agreement by and among the Company and Garrison Loan Agency Services LLC, as Administrative Agent and Collateral Agent, and the lenders from time to time party thereto (collectively, the “Lenders”), dated as of November 21, 2014, and that was attached as Exhibit 10.1 to that certain current report on Form 8-K filed by the Company on November 26, 2014, as amended (the “Credit Agreement”). The Company is unable to cure the defaults under the Credit Agreement, or to repay the amounts owed under the Credit Agreement.
On June 8, 2016, the Lenders completed the previously announced foreclosure of all assets of the Company pursuant to Section 9-620 of the New York Uniform Commercial Code and, as a result, substantially all assets formerly held by the Company are now in the possession of an entity formed by the Lenders (“NewCo”). This foreclosure leaves the Company without adequate assets to meet its contractual obligations to its customers, or to resolve its remaining liabilities.