Towerstream Corporation, Towerstream I Inc., Hetnets Tower Corporation, Omega Communications Corporation, Alpha Communications Corporation and Towerstream Houston, Inc. Enter into Second Amended and Restated Forbearance to Loan Agreement
April 18, 2018 at 05:00 pm EDT
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Effective April 15, 2018, Towerstream Corporation and its subsidiaries Towerstream I Inc., Hetnets Tower Corporation, Omega Communications Corporation, Alpha Communications Corporation and Towerstream Houston, Inc. entered into a second amended and restated forbearance to loan agreement (the second amended and restated agreement) with Melody Business Finance LLC (Melody) and the majority lenders under the loan agreement entered into on October 16, 2014 by and among the company, certain of its subsidiaries, Melody and the lenders party thereto (the loan agreement). Pursuant to the second amended and restated agreement, melody and the majority lenders waived the company's requirement under Section 6.1(a)(i) of the loan agreement to deliver to Melody an auditor's report without a going concern qualification (the qualified report) through June 30, 2018 (the Forbearance Period). In addition, Melody, through the forbearance period, waived the company's requirement to maintain at least $6,500,000 minimum in deposit accounts or securities accounts (the $6,500,000 minimum) and agreed to forbear from exercising any of its rights with respect to an event of default related to the qualified report and the $6,500,000 minimum. The forbearance period shall terminate upon the company's failure to maintain at least $3,000,000 minimum in deposit accounts or securities accounts or upon the occurrence of certain events of default. The company also agreed, among other things, to certain milestones in connection with a proposed sale of the company, (ii) subject to applicable law, to cease filing periodic reports with the Securities and Exchange Commission and to issue to Melody a new series of preferred stock that will be entitled to receive upon a liquidation event a distribution as set in the second amended and restated agreement. The second amended and restated agreement amends and restates in full the forbearance agreement by and between the company and melody originally effective January 26, 2018, as amended and restated on February 28, 2018 and amended on March 30, 2018.
Towerstream Corporation is an Internet service provider. The Company specializes in Internet Access to business and residential customers. Its services include business Internet, residential Internet, and temporary Internet and events. The Company provides fixed wireless Internet in select metropolitan markets including Boston, Chicago, Dallas/Ft. Worth, Houston, Los Angeles/Southern California, Maryland, Miami, New York, Philadelphia, and the greater Providence, RI area. The Company provides temporary Internet solution for construction sites, conferences and trade shows, television and movie production, concerts and special events and temporary offices. It provides customer support and monitoring through its United States- based network operations center.
Towerstream Corporation, Towerstream I Inc., Hetnets Tower Corporation, Omega Communications Corporation, Alpha Communications Corporation and Towerstream Houston, Inc. Enter into Second Amended and Restated Forbearance to Loan Agreement