secwatch / observer
8-K filed December 6, 2023, 6:59 PM ET CIK 0001784567
debt confidence high sentiment negative materiality 0.85

Harbor Custom Development, Inc.: debt financing — Harbor Custom Development defaults on $22M in loans; obligations accelerated

Harbor Custom Development, Inc.

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

Harbor Custom Development, Inc. reported a default on loan of $14,197,706.88 with BankUnited, N.A. at contract rate plus 3%.

Instrument
loan
Principal
$14,197,706.88
Counterparty
BankUnited, N.A.
Rate
contract rate plus 3%
Event
default
Exact text from the filing
On December 4, 2023, the Company received a notice of event of default and acceleration of all amounts due under the Loan from the Lender. According to the Lender, the principal amount due is $14,197,706.88 plus interest of $111,992.10 as of December 4, 2023 (the “Debt”). The Debt will accrue additional interest at the default rate from December 4, 2023, which rate floats at the contract rate plus 3%, until the Debt is paid in full.
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Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

Harbor Custom Development, Inc. reported a default on loan of $8,000,000 of principal with Fratelli's LLC at 18%.

Instrument
loan
Principal
$8,000,000 of principal
Counterparty
Fratelli's LLC
Rate
18%
Event
default
Exact text from the filing
On November 30, 2023, Harbor Custom Development, Inc., a Washington corporation (the “Company”), received a notice of event of default for failure to make payment of $8,000,000 of principal and $55,555.56 of prorated interest due on November 25, 2023 pursuant to the Company’s Loan Agreement with Fratelli’s LLC (the “Lender”), dated May 23, 2022 (the “Loan”).
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Source: SEC EDGAR
accession 0001493152-23-043906
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