TRANS-LUX CORPORATION (OTCMKTS:TNLX) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
The information provided in Item 2.03 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 1.01.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
On December 16, 2020, Trans-Lux Corporation (the Company) entered into a Modification Agreement (the Modification Agreement) of that certain Loan Agreement (the Loan Agreement) with its wholly-owned subsidiaries FairPlay Corporation (jointly, severally and collectively, Borrowers and each a Borrower), and Trans-Lux Canada Ltd., Trans-Lux Display Corporation, Trans-Lux Investment Corporation and Trans-Lux Energy Corporation jointly, severally and collectively, Guarantors and each a Guarantor; and together with Borrowers, jointly, severally and collectively, Loan Parties and each a Loan Party) and MidCap Business Credit LLC (MidCap) as lender (Lender).
Under the Modification Agreement, Lender waives the Companys events of default, including the Companys failure to maintain a certain minimum EBITDA calculation for the three month period ending September 30, 2020.
The Modification Agreement also removes the covenant that requires the Borrowers to attain a certain EBITDA amounts for the 6-month period ended December 31, 2020.
The Modification Agreement requires the payment of a modification fee of $2,500.
The foregoing description of the Modification Agreement is included to provide information regarding its terms. It does not purport to be a complete description and is qualified in its entirety by reference to the full text of the Modification Agreement, which is filed as Exhibit 10.1 hereto and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits