Subsequent Events |
3 Months Ended |
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Dec. 31, 2016 | |
Notes to Financial Statements | |
13. Subsequent Events |
On January 20, 2017, the Company, Triad Personnel Services, Inc. (TPS), Business Management Personnel, Inc. (BUMPS), BMPS, Inc. (BMPSOH), BMCH, Inc. (BMCH), BMCHPA, Inc.(BMCHPA), Triad Logistics, Inc. (Triad), Scribe Solutions, Inc. (Scribe), Agile Resources, Inc. (Agile), Access Data Consulting Corporation (Access Data) and Paladin Consulting, Inc., (Paladin and collectively with the foregoing, the Borrowers), and ACF FINCO I LP, f/k/a Keltic Financial Partners II, LP (Lender) entered into a Tenth Amendment, Consent and Waiver dated as of January 20, 2017 (the Amendment) to the Loan and Security Agreement dated September 27, 2013 by and among the Borrowers and the Lender (as so amended, the Credit Agreement and, as amended by the Amendment, the Amended Credit Agreement). Pursuant to the Amendment, the Lender agreed (i) to consent to the Companys execution and delivery of the Addendum and the consummation of the transactions contemplated by the Addendum, (ii) to allow the Company to pay the Earnout (as defined in the Paladin Agreement) Cash Payment to the Sellers, (iii) to allow the Company to issue the Subordinated Note to the Sellers and (iv) to amend the terms of the Credit Agreement to reflect the amended and restructured terms of the Earnouts. In connection with the execution and delivery of the Amendment, the Sellers and the Lender executed and delivered Amendment No. 1 dated January 20, 2017 to the Subordination Agreement between the Sellers and the Lender dated as of January 1, 2016.
Also in connection with the execution of the Amendment, the Borrowers, the Validity Party, the Guarantor, the Subordinated Creditors and the Lender executed and delivered a Reaffirmation Agreement effective as of January 20, 2017 (the Reaffirmation Agreement) pursuant to which, among other things, (i) the Borrowers reaffirmed their obligations to Lender under each of the Loan Documents (as defined in the Reaffirmation Agreement), (ii) the Validity Party (as defined in the Reaffirmation Agreement) reaffirmed his obligations under the Validity Agreement (as defined in the Reaffirmation Agreement) and each of the Loan Documents, (iii) the Guarantor (as defined in the Reaffirmation Agreement) reaffirmed his obligations under the Amended and Restated Guaranty Agreement dated on or about September 27, 2013 and each of the Loan Documents and (iv) each of the Subordinated Creditors (as defined in the Reaffirmation Agreement) reaffirmed its obligations under its respective Subordination Agreement (as defined in the Reaffirmation Agreement). |