---
schema_version: "secwatch.filing_event.v1"
accession: "0001641172-25-019524"
form_type: "8-K"
ticker: null
cik: "0001901297"
company_name: "ZRCN Inc."
filed_at: "2025-07-14T23:59:59+00:00"
generated_at: "2026-05-18T06:45:46.562030+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 on credit agreement; reaches preliminary forbearance deal

## Summary
- On April 30, 2025, ZRCN received Notice of Default from FGI Worldwide LLC for violating Fixed Cost Coverage Ratio and another covenant.
- Defaults are primarily due to reduced revenues and duties incurred on products imported from China.
- Lender has not accelerated or demanded payment; company continues to borrow under the agreement.
- Agreement in principle reached to amend terms and forbear defaults, subject to final documentation; no assurance.
- If uncured, lender could accelerate debt or foreclose on company assets.

## SEC filing metadata
- accession: 0001641172-25-019524
- form_type: 8-K
- cik: 0001901297
- company_name: ZRCN Inc.
- filed_at: 2025-07-14T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.75
- calibrated_materiality_score: 0.75
- confidence: high
- sec_items: 2.04
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1901297/000164117225019524/0001641172-25-019524-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1901297/000164117225019524/form8-k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001641172-25-019524
- JSON: https://secwatch.observer/filing/0001641172-25-019524.json
- Plain text: https://secwatch.observer/filing/0001641172-25-019524.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 April 30, 2025, ZRCN Inc. (the “Company”) received a Notice of Default (the “Notice”) on its Revolving Credit, Security, and Guaranty Agreement (the “Credit Agreement”) with FGI Worldwide LLC (the “Lender”) as a result of being non-compliant with its Fixed Cost Coverage Ratio covenant
  evidence_url: https://www.sec.gov/Archives/edgar/data/1901297/000164117225019524/0001641172-25-019524-index.htm

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