Xtera Communications Inc. (XCOMQ)

[expuman]

The writing in on the wall...

On the November 1, 2016 maturity date, which triggered an event of default provision in the Credit Agreement. As of November 1, 2016, the Company had outstanding principal and interest under the Credit Agreement of approximately $8.19 million. Because of the breach of the covenant, the B ank may, at its election, avail itself of all legal remedies available to secured creditors, including, without limitation, any one or more of the following: cease extending credit to the Borrowers; declare all obligations under the Credit Agreement immediately due and payable; take actions to protect its security interest in the collateral, including taking possession thereof; demand payment of and settle the Borrowers accounts constituting collateral; apply any balances of the Company held by the Bank to pay off the Credit Facility; prepare the collateral for sale; sell the collateral; or take possession of the Borrowers income tax returns and the books and records used to prepare them.