Company: CMCT
Filing Date: 2025-04-09
Form Type: 8-K
Source: 0000908311-25-000023
Chunk: 1

Company: Creative Media & Community Trust Corp
Filing Date: 2025-04-09
Form: 8-K
Item: Item 1.01
Chunk 1
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 carveout and carry guaranty to the Lender (the “ Guaranty Agreement”), under which the Company agreed to indemnify the Lender with respect to (i) certain “non-recourse carveout events” and to be fully liable for the Mortgage Loan in certain circumstances (e. g., the voluntary bankruptcy of the Borrower and other insolvency events) and (ii) carry costs relating to the Property until the earliest of certain dates, as described in the Guaranty Agreement. The Company also delivered a customary environmental indemnity agreement, pursuant to which the Borrower and the Company agreed to protect, defend, indemnify, release and hold harmless the Lender from and against certain environmental liabilities relating to the Property (the guaranty and indemnity documents described above are referred to collectively as the “ Guaranties”). The Guaranty Agreement requires the Company to maintain a net worth of no less than $35.0 million, exclusive of the value of the collateral for the Mortgage Loan, and liquid assets of no less than $3.0 million.

The New Loan Agreement and the Guaranties contain representations, warranties, covenants, events of default and indemnities that are customary for agreements of these types.

The foregoing summary of the New Loan Agreement and the Guaranties does not purport to be a complete description and is qualified in its entirety by the full text of the New Loan Agreement and the Guaranties, which are attached hereto as Exhibit 10.1, Exhibit 10.2 and Exhibit 10.3, respectively, and are incorporated herein by reference.

Item 1.02. Termination of a Material Definitive Agreement.

The information provided in Item 1.01 and Item 8.01 of this Current Report on Form 8-K is incorporated by reference into this Item 1.02.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.