---
schema_version: "secwatch.filing_event.v1"
accession: "0001493152-25-014988"
form_type: "8-K"
ticker: null
cik: "0001901297"
company_name: "ZRCN Inc."
filed_at: "2025-09-25T23:59:59+00:00"
generated_at: "2026-05-17T05:42:26.448477+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.75
calibrated_materiality_score: 0.75
confidence: "high"
source: SEC EDGAR
---

# ZRCN receives default notice for EBITDA covenant breach under credit agreement

## Summary
- Received Notice of Default on September 17, 2025 from lender FGI Worldwide LLC for breaching minimum EBITDA covenant.
- Default arose under forbearance agreement entered July 15, 2025; lender may accelerate debt or foreclose on assets.
- Lender has not yet demanded payment or exercised remedies; company continues discussions but no assurance of resolution.
- Credit Agreement dated May 31, 2024; EBITDA covenant was part of forbearance amendment.

## SEC filing metadata
- accession: 0001493152-25-014988
- form_type: 8-K
- cik: 0001901297
- company_name: ZRCN Inc.
- filed_at: 2025-09-25T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 2.04, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1901297/000149315225014988/0001493152-25-014988-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1901297/000149315225014988/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001493152-25-014988
- JSON: https://secwatch.observer/filing/0001493152-25-014988.json
- Plain text: https://secwatch.observer/filing/0001493152-25-014988.txt

## Key facts
- Debt Financings
  ZRCN Inc. reported a default on revolving credit with FGI Worldwide LLC.
  - Instrument: revolving credit
  - Counterparty: FGI Worldwide LLC
  - Event: default
  source text: On September 17, 2025, the Company and its Affiliates received a Notice of Default under the Credit Agreement (the "Notice") as a result of its failure to satisfy the EBITDA Covenant (the "Specified Defaults").
  evidence_url: https://www.sec.gov/Archives/edgar/data/1901297/000149315225014988/0001493152-25-014988-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.