---
schema_version: "secwatch.filing_event.v1"
accession: "0001683168-24-001359"
form_type: "8-K"
ticker: null
cik: "0000704562"
company_name: "Avid Bioservices, Inc."
filed_at: "2024-03-06T23:59:59+00:00"
generated_at: "2026-06-05T03:12:04.075181+00:00"
event_type: "debt"
sentiment: "negative"
materiality_score: 0.95
calibrated_materiality_score: 0.95
confidence: "high"
source: SEC EDGAR
---

# Avid Bioservices receives acceleration notice on $146M exchangeable notes; may restate prior financials

## Summary
- Holder of ≥25% of 1.25% Exchangeable Senior Notes due 2026 declared ~$146M principal and interest immediately due.
- Event of default triggered by failure to remove legend and unpaid Additional Interest of 0.5% p.a. (~$1.4M accrued).
- Cross-default under Bank of America credit agreement (no outstanding borrowings); seeking waiver.
- Company evaluating restatement of quarterly reports and FY2023 10-K for note misclassification and missing interest.
- May delay filing Q for Jan 31, 2024; warns it may need to raise funds or face bankruptcy.

## SEC filing metadata
- accession: 0001683168-24-001359
- form_type: 8-K
- cik: 0000704562
- company_name: Avid Bioservices, Inc.
- filed_at: 2024-03-06T23:59:59+00:00
- event_type: debt
- sentiment: negative
- materiality_score: 0.95
- calibrated_materiality_score: 0.95
- confidence: high
- sec_items: 2.04, 8.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/704562/000168316824001359/0001683168-24-001359-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/704562/000168316824001359/avid_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001683168-24-001359
- JSON: https://secwatch.observer/filing/0001683168-24-001359.json
- Plain text: https://secwatch.observer/filing/0001683168-24-001359.txt

## Key facts
- Debt Financings
  Avid Bioservices, Inc. reported a default on credit facility of No amounts are outstanding under the Company’s Credit Agreement with Bank of America, N.A..
  - Instrument: credit facility
  - Principal: No amounts are outstanding under the Company’s Credit Agreement
  - Counterparty: Bank of America, N.A.
  - Event: default
  source text: As a result of the Acceleration Event, such occurrence also resulted in a cross-default under the Company’s Credit Agreement with Bank of America, N.A. (the “Revolving Lender”)
  evidence_url: https://www.sec.gov/Archives/edgar/data/704562/000168316824001359/0001683168-24-001359-index.htm
- Debt Financings
  Avid Bioservices, Inc. faced acceleration on convertible notes of approximately $146.0 million with holder of its 1.250% Exchangeable Senior Notes due 2026 at 2.75% per annum until paid in full maturing due 2026.
  - Instrument: convertible notes
  - Principal: approximately $146.0 million
  - Counterparty: holder of its 1.250% Exchangeable Senior Notes due 2026
  - Rate: 2.75% per annum until paid in full
  - Maturity: due 2026
  - Event: acceleration
  source text: (the “Acceleration Event”). The accelerated amount, inclusive of principal and interest due and payable, as of February 29, 2024, the date of acceleration, was approximately $146.0 million and accrues interest at 2.75% per annum until paid in full. The Company did not receive any notices and was not otherwise made aware of the Event of Default prior to receipt of
  evidence_url: https://www.sec.gov/Archives/edgar/data/704562/000168316824001359/0001683168-24-001359-index.htm

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