Muscle Pharm Corporation (MSLPQ)

[Madcowelixir]

More drama filed today that may be the blueprint for an attempted reorganization plan between Ryan and White Winston/Amerop. Empery successfully gained immediate relief in the courts to arrest this plan as they have collateralized essentially all the MSLP assets and likely demanded the accelerated payment on the notes.

Section 5(b) under the Notes provides that if any event of default occurs, the outstanding principal amount of the Notes, plus accrued but unpaid interest, liquidated damages and other amounts owing in respect thereof through the date of acceleration, shall become, at the holder’s election, immediately due and payable in cash at the Mandatory Default Amount (as defined in the Notes) and further that commencing five (5) days after the occurrence of any event of default and that results in the right or automatic acceleration of the Notes, the Notes shall accrue interest at an interest rate equal to the lesser of eighteen percent (18%) per annum or the maximum rate permitted under applicable law. The October Notes were amended pursuant to a Waiver and Amendment, dated June 3, 2022 (the “Waiver and Amendment”).

https://www.sec.gov/Archives/edgar/data/1415684/000119312522310165/d419219dsc13da.htm