---
schema_version: "secwatch.filing_event.v1"
accession: "0001628280-23-032187"
form_type: "8-K"
ticker: "AVTX"
cik: "0001534120"
company_name: "Avalo Therapeutics, Inc."
filed_at: "2023-09-13T23:59:59+00:00"
generated_at: "2026-06-10T19:01:51.243336+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# Avalo extends debt forbearance to Oct 15; grants IP as collateral on $13M loan

## Summary
- Forbearance extended from Sept 15 to Oct 15, 2023 under Third Forbearance Agreement.
- Outstanding loan principal of $13.07M; MAC default asserted by lenders.
- Avalo grants security interest in owned patents and trademarks (First Amendment).
- Covenant to maintain at least $3M cash in deposit accounts subject to control agreement.
- Lenders have sole discretion to extend forbearance beyond Oct 15.

## SEC filing metadata
- accession: 0001628280-23-032187
- form_type: 8-K
- ticker: AVTX
- cik: 0001534120
- company_name: Avalo Therapeutics, Inc.
- filed_at: 2023-09-13T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 1.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1534120/000162828023032187/0001628280-23-032187-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1534120/000162828023032187/avtx-20230913.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001628280-23-032187
- JSON: https://secwatch.observer/filing/0001628280-23-032187.json
- Plain text: https://secwatch.observer/filing/0001628280-23-032187.txt

## Key facts
- Material Agreements
  Avalo Therapeutics, Inc. entered into Third Forbearance Agreement with Holders (effective 2023-09-13).
  - Action: entry
  - Counterparty: Holders
  - Effective: 2023-09-13
  source text: On September 13, 2023, the Company and the Holders entered into a Third Forbearance Agreement (the “Third Forbearance Agreement”) to, among other things, further extend the forbearance period until October 15, 2023.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1534120/000162828023032187/0001628280-23-032187-index.htm
- Material Agreements
  Avalo Therapeutics, Inc. amended Note Amendment with Holders (effective 2023-09-13).
  - Action: amendment
  - Agreement: credit facility
  - Counterparty: Holders
  - Effective: 2023-09-13
  source text: the Company agreed to amend the Note to grant to the Holders a security interest in the Company’s owned patents and trademarks (the “Note Amendment”).
  evidence_url: https://www.sec.gov/Archives/edgar/data/1534120/000162828023032187/0001628280-23-032187-index.htm

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