Extract to table

The forbearance agreement executed on October 10, 2022, and subsequently extended to March 8, 2023, provides a temporary waiver of the lenders' remedies arising from these defaults, but the underlying defaults remain outstanding and must be addressed through either a covenant reset in the proposed amendment or a permanent waiver

If unanimity is required for the maturity extension (as we suspect), all nine lenders must agree, making holdout risk a serious concern

This dilution must be presented to and approved by the Kostandinos family before it is tabled in negotiations with BMC

The Ad Hoc Group of Senior Secured Lenders has made clear, through informal communications via WCB, that any restructuring must include a meaningful equity contribution from the family

In addition to the equity contribution, the family must accept dilution from 80% to approximately 68% as a result of the 15% equity allocation to BMC as part of the mezzanine notes exchange