In Form NT 10-K filed on September 30, 2016, Versar, Inc. stated that it is currently in default under certain covenants of its current credit facility and is operating under a forbearance agreement with Bank of America, N.A. that will expire on September 30, 2016. On September 29, 2016, the Company entered into another forbearance agreement that currently expires on October 31, 2016. Until the Company amends the existing credit facility or obtains a new adequate credit facility, there is substantial doubt relative to the Company’s ability to continue as a going concern. The Company is in negotiations with Bank of America, N.A. regarding the resolution of such defaults. The Company is also in discussions with other lenders regarding the establishment of a new, replacement credit facility. Read more on distressed companies.
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