CHEROKEE INC. (NASDAQ:CHKE) Files An 8-K Other EventsItem 8.01Other Information.
Extension of Forbearance. As previously disclosed, on June27, 2017, Cherokee, Inc. (the“Company”) obtained a forbearance from Cerberus Business Finance, LLC (“Cerberus”) regarding the Company’s failure to comply with certain covenants set forth in the Company’s senior secured credit facility with Cerberus (the“Cerberus Credit Facility”). to the forbearance, Cerberus agreed that it would not exercise its rights or remedies under the Cerberus Credit Facility solely with respect to these events of default through July7, 2017, which was subsequently extended through July14, 2017, July28, 2017 and August4, 2017. The Company has now obtained a further extension of the forbearance through August11, 2017. The Company is in discussions with Cerberus to obtain a waiver of the events of default and an amendment of certain terms of the Cerberus Credit Facility during the forbearance period. However, there can be no assurance that such a waiver and amendment will be obtained, or if it is obtained, that such waiver and amendment will be obtained during the forbearance period or on terms favorable to the Company. Any failure to obtain such a waiver or amendment within the forbearance period would subject the Company to significant risks, including Cerberus’s right to terminate its obligations under the Cerberus Credit Facility, declare all or any portion of the borrowed amounts then outstanding to be accelerated and due and payable, and/or exercise any other rights or remedies it may have under applicable law, including foreclosing on the Company’s and/or its subsidiaries assets that serve as collateral for the borrowed amounts.