Delcath Systems Inc (DCTH)

[Bond]

seems like company wants it self to default and let it go to borrowers intentionally!

This dead lock can not be solved, Delcath time of death 05/02/2019 at 5 PM EST.


Item 1.01.
Entry into a Material Definitive Agreement.

On April 26, 2019, Delcath Systems, Inc. (the “Company”) borrowed $920,000 from two institutional investors and issued promissory notes to those investors. The promissory notes have a principal amount of $920,000, bear interest at the rate of 8% per annum and are due on October 26, 2019. The note contains standard events of default and remedies therefor. The Company’s obligations under the promissory note to the institutional investor are secured by a lien on the Company’s assets.



Item 2.03
Creation of a Direct Financial Obligation

See Item 1.01 above.



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

On April 24, 2019, the Company received a notice of default with regard to the 8% Senior Secured Convertible Notes due March 21,2019 (the “2019 Notes”) and the 8% Senior Secured Notes due March 21, 2020 (the “2020 Notes”) held by District 2 Capital Fund LP (“District Capital”) and Bigger Capital Fund, LP (“Bigger Capital”) with respect to specified defaults. The notice states that District Capital and Bigger Capital have opted to accelerate those Notes at the Default Amount as defined in those notes.