NextPoint Financial enters forbearance agreements with lenders

By Marisa Wong

Los Angeles, July 5 – NextPoint Financial Inc. announced that subsidiaries NPI Holdco LLC‎ and LT Holdco, LLC entered into a forbearance agreement with their respective principal secured lenders and subsidiary CTAX Acquisition LLC entered into a forbearance agreement with its principal secured lenders, according to a Tuesday press release.

The lenders have agreed to temporarily refrain from enforcing their default-related rights and remedies under each applicable credit agreement.

Under each CTAX credit facility, CTAX is required to make interest payments on July 1 or July 15, the failure of which will constitute an event of default.

Under the credit facility for NPI and LT, each borrower is required to make interest payments on July 3, the failure of which will constitute an event of default.

Under the terms of each forbearance agreement, the lenders have agreed to forbear from exercising their default-related rights and remedies in respect of or arising out of such events of default, as applicable, until the earlier of July 31 and the occurrence of any default or event of default.

NextPoint is a Hurst, Tex.-based marketplace for financial services aimed at underserved ‎consumers and small businesses. Its primary business units are Liberty ‎Tax, a provider of tax preparation services, and Community Tax, an advocate for tax debt ‎resolution on behalf of customers.‎

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