ATRM Holdings, Inc. (OTCMKTS:ATRM) Files An 8-K Entry into a Material Definitive Agreement

ATRM Holdings, Inc. (OTCMKTS:ATRM) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01. Entry into a Material Definitive Agreement.

Story continues below

KBS Loan Amendment

On December 22, 2017, ATRM Holdings, Inc. (the “Company”) entered into a Sixth Agreement of Amendment to Loan and Security Agreement (the “KBS Loan Amendment”) to amend the terms of the Loan and Security Agreement, dated as of February 23, 2016 (as amended, the “KBS Loan Agreement”), by and among the Company, KBS Builders, Inc., a wholly-owned subsidiary of the Company (“KBS”), and Gerber Finance Inc. (“Gerber Finance”), providing KBS with a credit facility based on a formula tied to certain eligible assets of KBS. The KBS Loan Amendment amended the KBS Loan Agreement to expand the borrowing base, extend the availability of permitted overadvances under certain circumstances, and make certain other changes.

In connection with the KBS Loan Amendment, Jeffrey E. Eberwein, a director of the Company, executed a guaranty dated November 20, 2017 in favor of Gerber Finance unconditionally guaranteeing up to $500,000 of KBS’s obligations under the KBS Loan Agreement arising from certain permitted overadvances.

EBGL Acquisition Loan Amendment

On December 22, 2017, the Company entered into a Fourth Agreement of Amendment to Loan and Security Agreement (the “EBGL Acquisition Loan Amendment”) to amend the terms of the Loan and Security Agreement, dated as of October 4, 2016 (as amended, the “EBGL Acquisition Loan Agreement”), by and among EdgeBuilder, Inc. and Glenbrook Building Supply, Inc., wholly-owned subsidiaries of the Company, the Company, KBS and Gerber Finance, providing for a loan in connection with the Company’s acquisition of its EBGL business. The EBGL Acquisition Loan Amendment amended the EBGL Acquisition Loan Agreement to reflect certain changes made to the KBS Loan Agreement under the KBS Loan Amendment.

An ad to help with our costs