Coin Cloud defaults on DIP loan, gets OK of forbearance agreement

By Sarah Lizee

Olympia, Wash., June 9 – Cash Cloud, Inc., which does business as Coin Cloud, received court approval of a stipulation with its debtor-in-possession lender CKDL Credit, LLC regarding a forbearance agreement, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Nevada.

On May 16, the lender sent a notice of event of default to the debtor after the debtor’s Florida license was suspended.

Coin Cloud and the lender wanted to resolve the issue and agreed to enter into a forbearance agreement, providing that the lender will forbear from exercising any and all rights and remedies on account of the default, subject to certain terms.

As previously reported, the company received court approval of the $5 million DIP facility in March.

Interest on the facility is 15% per annum, payable in kind. The default rate is 20% PIK.

Effective as of April 17, the interest rate under the loan is the default rate until the earlier of repayment in full of all obligations or the reinstatement by Florida in full all permits, licenses or other approvals of the borrower to conduct its business and operations in Florida as it did prior to the event of default.

As partial consideration for the lender’s agreement to forbear, Coin Cloud must pay the lender a forbearance fee of $70,000.

The Las Vegas-based digital currency machine company filed bankruptcy on Feb. 7 under Chapter 11 case number 23-10423.

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