Sphere 3D announces event of default under existing credit facilities.
Sphere 3D Corp. announced that on August 1, 2018, Overland Storage, Inc., a wholly-owned subsidiary of the Company, together with Tandberg Data GmbH, as co-borrowers under that certain Credit Agreement dated as of April 6, 2016, with CB CA SPV, LLC, as lender, failed to make a required payment of interest due on such date. Such failure constituted an Event of Default as of August 6, 2018 under the Credit Agreement after expiration of a five day cure period. On August 7, 2018, Overland received a notice from Colbeck stating that, as a result of such failure, all amounts under the Credit Agreement are immediately due and payable. The foregoing also constitutes an Event of Default, as defined in and pursuant to that certain 8% Senior Secured Convertible Debenture in favor of FBC Holdings, S.a r.l. The Company, Overland and their subsidiaries are in continuing discussions for a potential resolution with the Lenders. Despite these efforts, there can be no assurance that the Lenders will ultimately agree to any such resolution.
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|Date:||Aug 13, 2018|
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