secwatch / observer
8-K filed March 4, 2026, 6:59 PM ET CIK 0001015155
other material confidence high sentiment negative materiality 1.00

CHARLES & COLVARD LTD: going-concern / distress — Charles & Colvard files for Chapter 11 bankruptcy protection

CHARLES & COLVARD LTD

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

CHARLES & COLVARD LTD reported a default on convertible notes with Ethara Capital LLC.

Instrument
convertible notes
Counterparty
Ethara Capital LLC
Event
default
Exact text from the filing
The filing of the Chapter 11 Case may trigger events of default under certain of the Debtor’s contracts, agreements or debt instruments, including but not limited to that certain Convertible Secured Note Purchase Agreement between the Company and Ethara Capital LLC dated June 24, 2025
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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.85

CHARLES & COLVARD LTD reported a default on lease obligation with SBP Office Owner, L.P..

Instrument
lease obligation
Counterparty
SBP Office Owner, L.P.
Event
default
Exact text from the filing
and that certain Lease Agreement between the Company and SBP Office Owner, L.P. dated December 9, 2013, as amended December 23, 2013, April 15, 2014 and January 29, 2021, which may result in the termination of, or an acceleration of the Debtor’s obligations under, such contracts, agreements or debt instruments
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Distress & Bankruptcy SEC 8-K Item 1.03 confidence 0.9

CHARLES & COLVARD LTD entered chapter 11 in United States Bankruptcy Court for the Eastern District of North Carolina (petition 2026-03-02).

Proceeding
chapter 11
Court
United States Bankruptcy Court for the Eastern District of North Carolina
Petition
2026-03-02
Exact text from the filing
On March 2, 2026 (the “Petition Date”), Charles & Colvard, Ltd. (the “Company” or the “Debtor”), filed a voluntary petition for relief (the “Chapter 11 Case”) under Chapter 11 (“Chapter 11”) of Title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Eastern District of North Carolina (the “Bankruptcy Court”).
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Source: SEC EDGAR
accession 0001104659-26-023038
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