Crown Crafts Inc filed SEC Form 8-K: Entry into a Material Definitive Agreement

false 0000025895 0000025895 2025-01-02 2025-01-02

 

 

 

 

                                                      

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(Former name or former address if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

 

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

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On January 2, 2025, Crown Crafts, Inc. (the “Company”) and its subsidiaries entered into a letter agreement (the “Letter Agreement”) with The CIT Group/Commercial Services, Inc. (“CIT”) with respect to the Financing Agreement, dated July 11, 2006, between the Company, its subsidiaries and CIT, as supplemented, amended and restated from time to time (the “Financing Agreement”). Pursuant to the Letter Agreement, CIT waives the Company’s non-compliance with the fixed charge coverage ratio required under the Financing Agreement with respect to the Company’s fiscal quarters ended September 29, 2024 and December 29, 2024.

 

In addition, the Letter Agreement modifies the Financing Agreement by changing the Excess Availability (as defined in the Financing Agreement) required to be maintained by the Company with respect to its revolving line of credit under the Financing Agreement to $7,000,000.00 (from 50% of the outstanding balance of the Company’s term loan under the Financing Agreement). Upon notice to the Company, CIT may reverse such modification.

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.