Ark Restaurants Corp. announced that it entered into an Omnibus Amendment to its Credit Agreement with Bank Hapoalim B.M. on May 29, 2025. This amendment extends the maturity date of the Credit Agreement, originally set for June 1, 2025, to June 1, 2028.
The terms of the credit facility were modified, including a reduction in the maximum permitted obligations outstanding under the Credit Agreement from $30,000,000 to $20,000,000. Additionally, the due dates for balloon payments of outstanding promissory notes were extended.
The amendment also increased the minimum tangible net worth covenant from $22,000,000 to $28,000,000. This adjustment reflects a change in the financial requirements for the company under the extended agreement.
A notable change in the amended credit facility is the removal of the annual net income covenant. This provides Ark Restaurants with increased operational flexibility, as it eliminates a previous financial performance requirement.
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