Item 1.03. Bankruptcy or Receivership
As previously announced, on
The Company Parties continue to operate their businesses as
debtors-in-possession under the jurisdiction of the
Item 2.04. Triggering Events that Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement
The commencement of the Chapter 11 Cases described in Item 1.03 above constituted an event of default or termination event, and caused the automatic and immediate acceleration of all debt outstanding under or in respect of a number of instruments and agreements relating to direct financial obligations of the Company Parties (the "Accelerated Direct Financial Obligations"). The material Accelerated Direct Financial Obligations include:
•Debt outstanding under that certain First Lien Credit Agreement dated as of
•Debt outstanding under that certain Second Lien Credit Agreement dated as of
The agreements relating to the Accelerated Direct Financial Obligations described above provide that as a result of the commencement of the Chapter 11 Cases, the unpaid principal
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amount of all outstanding debt, together with accrued interest and other amounts thereon, shall automatically become due and payable without further act of the Agent or any lender thereunder. The Company Parties believe that any efforts to enforce payment obligations under the Accelerated Direct Financial Obligations are automatically stayed as a result of the filing of the Chapter 11 Cases and the creditors' rights of enforcement in respect of the debt instruments are subject to the applicable provisions of the Bankruptcy Code.
Item 7.01. Regulation FD Disclosure.
Press Release
On
The press release can be found on the Company's investor relations website at
investors.jasoninc.com. Court filings and other information related to the
Chapter 11 Cases, including the disclosure statement,
Cautionary Statement Concerning Forward-Looking Statements
This current report contains "forward-looking statements" related to future
events. Forward-looking statements contain words such as "expect," "anticipate,"
"could," "should," "intend," "plan," "believe," "seek," "see," "may," "will,"
"would," or "target." Forward-looking statements are based on management's
current expectations, beliefs, assumptions and estimates and may include, for
example, statements regarding the Chapter 11 Cases, the Company's ability to
complete the Restructuring and its ability to continue operating in the ordinary
course while the Chapter 11 Cases are pending. These statements are subject to
significant risks, uncertainties, and assumptions that are difficult to predict
and could cause actual results to differ materially and adversely from those
expressed or implied in the forward-looking statements, including risks and
uncertainties regarding: the Company's ability to successfully complete a
Restructuring under Chapter 11; potential adverse effects of the Chapter 11
Cases on the Company's liquidity and results of operations; the Company's
ability to obtain timely approval by the
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Cases, which may interfere with the Company's ability to consummate the
Restructuring or an alternative restructuring; increased administrative and
legal costs related to the Chapter 11 process; potential delays in the Chapter
11 process due to the effects of the COVID-19 virus; and other litigation and
inherent risks involved in a bankruptcy process. Forward-looking statements are
also subject to the risk factors and cautionary language described from time to
time in the reports the Company files with the
The Company cautions that trading in the Company's securities during the pendency of the Chapter 11 Cases is highly speculative and poses substantial risks. Trading prices for the Company's securities may bear little or no relationship to the actual recovery, if any, by holders of the Company's securities in the Chapter 11 Cases. The Company expects that holders of shares of the Company's common stock could experience a complete loss on their investment, depending on the outcome of the Chapter 11 Cases.
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