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 regardingthe Company’s failure to comply with certain covenants set forth in 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.On July 7, 2017, the Company obtained an extension of the forbearance through July 14, 2017. The Company intends to seek a waiver of the events of default and/or amend certain terms of the Cerberus Credit Facility during the forbearance period, but such a waiver or amendment may not be obtained, or if obtained, may not be obtained in a timely manner, on terms favorable to the Company or at all. 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.