ITEM 8.01 Other Events.
As previously reported, AAC Holdings, Inc., a Nevada corporation (the
"Company"), entered into that certain Credit Agreement, dated as of March 8,
2019, together with Credit Suisse AG, as administrative agent and collateral
agent, and the lenders party thereto (the "2019 Credit Facility"), and that
certain Credit Agreement, dated as of June 30, 2017, together with Credit Suisse
AG, as administrative agent and collateral agent, and the lenders party thereto
(as amended, the "2017 Credit Facility" and, together with the 2019 Credit
Facility, the "Credit Facilities"). Also as previously reported, on October 30,
2019, the Company entered into forbearance agreements (together, the
"Forbearance Agreements") with the applicable lenders (the "Forbearing Lenders")
and agents in respect of the Credit Facilities, pursuant to which, among other
things, the Forbearing Lenders agreed to forbear from exercising their
respective creditors' remedies under the Credit Facilities that would have
otherwise been available due to the existence of certain events of default by
the Company under the Credit Facilities.
On January 9, 2020, the Forbearing Lenders delivered to the Company notice of
the termination of the respective forbearance periods under the Forbearance
Agreements due to, among other things, the continuance of certain events of
default under the Credit Facilities and the failure of the Company under the
Forbearance Agreements to have provided the Forbearing Lenders with a three-year
business plan for the Company. Due to the foregoing termination of the
forbearance periods, the lenders under the Credit Facilities may now exercise
any and all creditors' remedies available to such lenders in respect of the
Credit Facilities, including, without limitation, the lenders' right to
accelerate the respective maturities of, and make immediately due and payable,
all amounts currently outstanding under the Credit Facilities due the Company's
continuing default of certain of its obligations thereunder.
The Company is currently negotiating with the Forbearing Lenders both potential
amendments to the Forbearance Agreements that would reinstitute such lenders'
agreements to forbear from exercising their respective creditors' remedies with
respect to the Credit Facilities, as well as additional incremental funding;
however, there can be no assurance that the Company will successfully consummate
such amendments or receive any such funding on terms acceptable to the Company
or at all.
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