iPic misses debt payment, may seek restructuring through Chapter 11.
iPic Entertainment disclosed late Friday that as of July 25, it has approximately $204M of outstanding indebtedness under its credit facility with the Teachers' Retirement System of Alabama and The Employees' Retirement System of Alabama. The company was obligated to make a $10.1M interest payment to RSA under the credit facility on July 1. iPic expected to draw down a "substantial portion" of the remaining principal balance of the credit facility to make the interest payment. To date, however, RSA "has not made additional funds available to us under the credit facility for the purpose of making the interest payment and we have not made the interest payment as of the date hereof," the company said, It remains in "active discussions with RSA and its advisors regarding the availability of the undrawn principal balance under our credit facility, and the restructuring of our outstanding indebtedness." The company has engaged financial and legal advisors to assist in, among other things, "analyzing various strategic financial alternatives to address our liquidity and capital structure, including strategic financial alternatives to restructure our indebtedness. " iPic added, "We may elect to implement a restructuring or a strategic alternative through Chapter 11 in order to obtain court approval of such transactions and to facilitate the stakeholder approvals necessary to implement such transactions, or it may otherwise become necessary for us to seek protection under Chapter 11." Shares of iPic Entertainment are down 39%, or 86c, to $1.32 in late morning trading.
|Printer friendly Cite/link Email Feedback|
|Date:||Jul 29, 2019|
|Previous Article:||Treasury Action: yields remain slightly lower on the day.|
|Next Article:||Amazon exploring more ambitious grocery plans, NY Times says.|