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ZYNEX INC FILES (8-K) Disclosing Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement

July 18, 2014



Item 2.04. Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

On July 14, 2014, Zynex, Inc. (the "Company") received notice from Triumph Community Bank dba Triumph Healthcare Finance (the "Lender") of an event of default under the Company's Loan and Security Agreement with the Lender dated December 19, 2011, as amended ( the "Credit Agreement"). The notice relates to the Company's default under the minimum debt service coverage ratio for the quarter ended March 31, 2014 and certain other alleged defaults. The Lender notified the Company that it would no longer make additional loans under the Credit Agreement and was exercising its default remedies under the Credit Agreement, including, among others, accelerating the repayment of all outstanding obligations under the Credit Agreement (outstanding principal and accrued interest) and collecting the Company's bank deposits to apply towards the outstanding obligations. As of July 17, 2014, the Company has approximately $4,540,665 of outstanding borrowings under the Credit Agreement including approximately $43,820 of interest and fees.

The Company and the Lender are currently negotiating the terms of an accelerated repayment of the amounts outstanding under the Credit Agreement. However, no assurance can be given that the parties will agree on a repayment plan acceptable to the Company. If the Lender insists upon immediate repayment, the Company will be insolvent and may be forced to declare bankruptcy.

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Source: Edgar Glimpses


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