EXCC Excel Corporation (CE)

As previously disclosed in a Current Report on Form 8-K filed with the Securities and Exchange Commission on October 5, 2017, on September 27, 2017, Excel Corporation (the “Company”) received a supplemental notice (the “Notice”) from GACP Finance Co., LLC (“GACP”), relating to the Company’s default under the terms of that certain Loan and Security Agreement, originally dated November 2, 2016, among GACP, as agent, the lenders party thereto, the Company, as borrower, and certain subsidiaries of the Company as guarantors (as amended on January 26, 2017, the “Loan Agreement”). The Notice (i) demanded immediate payment from the Company of all obligations owing to the lenders under the Loan Agreement and (ii) served notification of GACP’s intended disposition of collateral under the Loan Agreement.

On October 16, 2017, the parties to the Loan Agreement entered into a Forbearance Agreement and Second Amendment to Loan and Security Agreement (the “Forbearance Agreement”), as a result of which GACP and the lenders have agreed to temporarily forbear exercising their rights and remedies under the Loan Agreement, specifically the demand of immediate payment of all obligations owing under the Loan Agreement and the disposition of the collateral, until December 12, 2017 (or earlier if there are further defaults by the Company under either the Loan Agreement or the Forbearance Agreement). Under the Forbearance Agreement, the Company agreed to take certain actions in furtherance of exploring strategic alternatives, including, without limitation, potential sale opportunities of the Company and its portfolios.