Borealis Foods gets default notice from lender

Borealis Foods has received a default announcement from its lender Frontwell Capital Partners successful the latest stroke to the Canada-based ramen noodles supplier.

In a filing with the US Securities and Exchange Commission connected Friday (17 April), Borealis Foods said the counsel to Frontwell had sent a announcement connected 13 April saying the institution and its subsidiaries person “failed to satisfy” a required "milestone" nether a 27 March forbearance and amendment agreement.

The March statement followed earlier defaults nether Borealis Foods’ August 2023 recognition installation with Frontwell.

Outstanding obligations nether the recognition statement "were astatine least" $16.1m, including accrued interest, fees and expenses, the filing read.

It added: "The lender has not elected to terminate the forbearance play astatine this clip but has reserved each rights successful respect of the forbearance default."

Founded successful 2019 by CEO Reza Soltanzadesh, Borealis Foods operates done its subsidiary Palmetto Gourmet Foods, which makes plant-based instant noodles astatine a 475,000-square-foot installation successful Saluda, South Carolina.

Its brands see Chef Woo and Ramen Express.

In May 2025, Borealis warned astir its quality to proceed unless it raised caller capital.

The radical completed its Nasdaq listing successful February of 2024 done a merger with Oxus Acquisition Corp.

Under the forbearance terms, Borealis Foods had to provide, by 9 April, a written program showing however it would make “sufficient proceeds” to repay each amounts outstanding nether the Frontwell loan.

Borealis Foods said it submitted definite word sheets, but Frontwell concluded the “materials did not represent a satisfactory plan”.

Missing that deadline puts Borealis successful default nether the forbearance deal, meaning Frontwell tin extremity the grace play and request contiguous repayment.

The existent forbearance play is owed to expire connected 27 April.

Borealis Foods said it is “evaluating alternatives to code its outstanding obligations, including imaginable refinancing, a capital-raising and different strategical transactions”.

It besides warned determination is “no assurance that the institution volition get alternate financing oregon that the lender volition not elite to terminate the forbearance play and workout its remedies”.

For the archetypal 9 months of 2025, Borealis reported nett gross of $21.1m, up astir 1% from a twelvemonth earlier. It booked a nett nonaccomplishment of $12.5m, narrowing from a $19.5m nonaccomplishment previously.

"Borealis Foods gets default announcement from lender" was primitively created and published by Just Food, a GlobalData owned brand.

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