Arcadia Resources Inc fka KADR

[nuubie]

OOOPS! 8K OUT! "all amounts under the Comerica Credit Agreement to be due and payable"

On April 17, 2012, the Services Borrowers and RKDA entered into an agreement with Comerica with respect to the Comerica Credit Agreement and amounts due under such credit agreement (the “Forbearance Agreement”). As part of the Forbearance Agreement, Comerica (a) declared all amounts under the Comerica Credit Agreement to be due and payable, including all principal, interest, and legal fees and other expenses incurred with respect thereto (the “Liabilities”) and (b) demanded payment in full of the Liabilities. Comerica agreed to forbear until April 30, 2012, subject to the terms and conditions set forth in the Forbearance Agreement and summarized below, from taking any action to collect the Liabilities, provided the Services Borrowers and RKDA comply with the terms of the Forbearance Agreement.


In the Forbearance Agreement, the Services Borrowers and RKDA (a) acknowledge the Liabilities as set out in the Comerica Credit Agreement and the existence of the default, (b) acknowledge and agree that Comerica’s demand for payment is timely and proper and (c) acknowledge that Comerica is under no obligation to advance funds or extend further credit under the Comerica Credit Agreement. Comerica has agreed that it may, in its sole discretion, continue to advance funds to the Services Borrowers under the Comerica Credit Agreement. The Forbearance Agreement increased the maximum amount available under the Comerica Credit Agreement from $11.0 million to $11.5 million. In addition, Comerica agreed that the borrowings under the Comerica Credit Agreement may exceed the Advance Formula (as defined in the Comerica Credit Agreement) by $500,000 at any given time, plus an additional over-formula amount, if any, as determined by Comerica its sole discretion.


The Forbearance Agreement extends to April 30, 2012. Comerica reserves the right to terminate its forbearance prior to that date (a) in the event there are any new defaults under the Comerica Credit Agreement or defaults under the Forbearance Agreement, (b) in the event of further deterioration in Comerica’s Collateral position and/or (c) in the event Comerica, for any reason, believes that the prospect of payment or performance is impaired.
http://www.sec.gov/Archives/edgar/data/1071941/000114036112021049/form8k.htm