In Form 8-K filed on May 11, 2017, Excel Corporation received a written notice from GACP Finance Co. that it was in default under the terms of the Loan and Security Agreement dated November 2, 2016. The Lender also terminated its commitment to lend or extend credit under the Loan Agreement. As a result of the default, the Lender may declare all amounts under the Loan Agreement due and payable. As of May 10, 2017, the Lender has not accelerated the remaining principal balance. As of April 30, 2017, the principal due under Loan Agreement was $13,783,602. The April 30, 2017 loan balance was in excess of the borrowing base as calculated under the Loan Agreement and the Company made a principal payment on May 8, 2017 of $512,583 to reduce the loan balance to $13,271,019 which was within the borrowing base. There can be no assurances that the Company will be able to enter into a forbearance agreement with the lender. Read more on distressed companies.
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