NORTHERN POWER SYSTEMS CORP. (TSE:NPS) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
On November 30, 2018, Northern Power Systems, Inc., a wholly owned subsidiary of Northern Power Systems Corp, a British Columbia corporation (collectively, the “Company”), entered into an Amended and Restated Forbearance Agreement by and between Comerica Bank and the Company (the “Amended Forbearance Agreement”). On May 29, 2018, Comerica informed the Company that the Company was not currently in compliance with two covenants (collectively, the “Covenants”) under that certain Amended and Restated Loan and Security Agreement by and between the Company and Comerica dated December 31, 2013 and as amended (the “Loan”). Ultimately, Comerica and the Company entered into a Forbearance Agreement dated August 2, 2018 which the Company previously disclosed on a Form 8-K dated August 2, 2018 (the “Forbearance Agreement”). The Amended Forbearance Agreement amends and restates the Forbearance Agreement.
The terms of the Amended Forbearance Agreement provide, among other things, that Comerica shall, until the earlier of (i) April 1, 2019 or (ii) such date that there shall occur any further event of default, forbear from exercising any remedies that it may have against Borrower as a result of the occurrence of the existing defaults. In the event of a default, Comerica may immediately call the Loan. Further the Amended Forbearance Agreement provides that the Company (i) will repay its obligations under the Loan to the repayment schedule below and (ii) the Company shall use its best efforts to secure replacement financing of the debt under the Loan as soon as possible, and on or before March 1, 2019.
Repayment Schedule:
| Payment DaTE | Payment Amount | Principal Outstanding |
| Earlier of Sale Date set forth on Exhibit A or December 7, 2018 | $250,000, subject to Exhibit A | $650,000 |
| Earlier of Sale Date set forth on Exhibit A or February 1, 2019 | $350,000, subject to Exhibit A | $300,000 |
| February 21, 2019 | $100,000 | $200,000 |
| March 21, 2019 | $100,000 | $100,000 |
| April 1, 2019 | $100,000 | $0 |
Item 1.01 Financial Statements and Exhibits.
(d) The following exhibits are filed with this report.
Northern Power Systems Corp. ExhibitEX-10.2 2 exh_102.htm EXHIBIT 10.2 Exhibit 10.2 AMENDED AND RESTATED FORBEARANCE AGREEMENT This Amended and Restated Forbearance Agreement (this “Agreement”) is entered into as of November 30,…To view the full exhibit click here
About NORTHERN POWER SYSTEMS CORP. (TSE:NPS)
Northern Power Systems Corp. is a provider of renewable power creation and power conversion technology for the energy sector. The Company designs, manufactures and services permanent magnet direct-drive (PMDD) wind turbines for the distributed wind market. Its segments include Product Sales and Service, Technology Licensing, Technology Development and Shared Services. The Product Sales and Service segment includes the sale of distributed-class turbines along with related services and other products produced and sold to customers. The Technology Licensing segment includes the licensing of packages of its developed technology. The Technology Development segment includes the development of technology for specific customer needs. The Shared Services segment comprises general and administrative departments. The Company licenses its utility-class wind turbine platform, which uses the PMDD technology as its distributed turbines, to the manufacturers on a global basis.
