Loop Media Inc. filed SEC Form 8-K: Events That Accelerate or Increase a Direct Financial Obligation, Financial Statements and Exhibits
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Item 2.04 Triggering Events that Accelerate or Increase a Direct Financial Obligation Under an Off-Balance Sheet Arrangement.
As previously reported in the Current Report on Form 8-K filed by Loop Media, Inc., a Nevada corporation (the “Company”), on October 29, 2024, the Company received a reservation of rights notice (the “Reservation of Rights Notice”) from its senior lender (the “Senior Lender”) under its revolving loan facility in (the “Revolving Loan Facility”) informing the Company that events of default have occurred and are continuing under the Revolving Loan Facility as a result of the Company’s incurrence of indebtedness that was not expressly subordinated to the Company’s indebtedness to the Senior Lender pursuant to a subordination agreement in form and substance satisfactory to the Senior Lender.
As previously reported, prior to and following receipt of the Reservation of Rights Notice, the Company had been in negotiations with the Senior Lender to reach an agreement on the terms of the subordination agreement and to resolve the alleged default. On November 5, 2024, the Company received an acceleration notice (the “Acceleration Notice”) from the Senior Lender demanding payment of the full amount outstanding on the Revolving Loan Facility by 5:00 p.m. Central time on November 8, 2024 (the “Demand”). On November 7, 2024, the Senior Lender orally agreed to suspend the Demand deadline to allow the Company and Senior Lender to enter into negotiations for a forbearance of the Demand for a period of time to work toward a mutually agreeable resolution, but as of the date of this report, the Company has not received a formal written notice of this suspension. Notwithstanding the Demand for payment of the full amount outstanding on the Revolving Loan Facility, prior to the receipt of the Reservation of Rights Notice and up to the date of this report, the Company has continued to make regularly scheduled payments to the Senior Lender in accordance with the terms of the loan documents, and it will continue to do so.
Failure to come to terms with the Senior Lender may cause the Company to continue to be in default with the Senior Lender, which would allow it to pursue its remedies as the senior secured lender. As previously reported, such a default could also trigger cross-defaults under certain other loan agreements and the possible acceleration of such indebtedness.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
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, hereunto duly authorized.
| Date: | November 12, 2024 | LOOP MEDIA, INC. | |
| By: | /s/ Justis Kao | ||
| Justis Kao, Chief Executive Officer | |||