Healthcare Triangle, Inc. (HCTI): debt financing — Healthcare Triangle receives default notice on $2.4M Seacoast debt; interest rate increases to 18%

Healthcare Triangle, Inc.

Default notice from Seacoast Business Funding on June 23, 2023 for violating terms of Purchasing Agreement.
Interest rate increased from Prime Rate to 18%; outstanding balance of $2,409,437 as of June 28, 2023.
Default triggered by HCTI entering $1.5M loan with Agile Capital Funding without Seacoast's prior consent.
No acceleration or foreclosure yet; company seeking resolution but no guarantee of favorable terms.
Failure to resolve could cause material adverse effect on liquidity, financial condition, and possibly bankruptcy.

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

Healthcare Triangle, Inc. reported a default on debt of $2,409,437 with Seacoast Business Funding, a division of Seacoast National Bank at 18%.

Principal: $2,409,437
Counterparty: Seacoast Business Funding, a division of Seacoast National Bank
Rate: 18%
Event: default

Exact text from the filing

fee payable by HCTI to Seacoast went from the Prime Rate (as defined in the Purchasing Agreement) to 18%. As of June 28, 2023, the Company has an outstanding payment balance of $2,409,437 under the Purchase Agreement. Section 6(h) of the Purchase Agreement requires the Company to obtain the written consent of Seacoast prior to obtaining any loans or advances. On

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Healthcare Triangle, Inc. filing history →

Source: SEC EDGAR

accession 0001607062-23-000352

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