Company: ATLN
Filing Date: 2025-05-05
Form Type: 8-K
Source: 0001605888-25-000010
Chunk: 1

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-05-05
Form: 8-K
Item: Item 2.03
Chunk 1
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 other permitted investments.

The Loan Agreement matures on April 29, 2028 (“ Termination Date”), unless Lender, at its option, in writing agrees to extend the Term for a period of one (1) year from the then Termination Date. The Loan Agreement contains customary covenants for credit facilities of this type. The Loan Agreement also contains affirmative and negative covenants applicable to the Lyneer and some or all of its subsidiaries. The Loan is guaranteed by Lyneer Holdings, Inc. and Lyneer Investments, LLC. The Loan Agreement provides for certain customary events of default, including among others, non-payment of principal, interest or other amounts when due, inaccuracy of representations and warranties, violation of covenants, cross defaults with certain other indebtedness, insolvency or inability to pay debts, bankruptcy, or a change of control.

Junior lenders of Lyneer respecting certain joint and several debt entered into intercreditor agreements with the Lender regarding their respective rights and remedies. Lyneer’s current lender funded the shortfall of six million dollars ($6,000,000), the portion owed to BMO by IDC on the ABL. BMO has assumed 3,439,803 shares of the Company previously owned by IDC as collateral. On April 28, 2025, the Term Note lender foreclosed on IDC’s remaining 21,983,926 shares of the Company’s stock.

The foregoing description of the Loan Agreement does not purport to be complete and is subject to, and qualified in its entirety by, reference to the Loan Agreement, which is attached hereto as Exhibit 10.1 and incorporated herein by reference.

Item 7.01 Regulation FD Disclosure