House of Taylor said Thursday it has received a “Notice of Default; Reservation of Rights” letter from New Stream Secured Capital, L.P., its senior lender.
The loan was filed on Oct. 18, 2007, for nearly $3.95 million. The Los Angeles-based jewelry company released its default letter in a Securities and Exchange Commission filing Thursday.
New Stream, in its letter also noted that House of Taylor failed to maintain minimum EBITDA from Dec. 31, 2007, till March 31.
“Lender hereby specifically reserves all of the rights and remedies of any kind, nature or description available to lender as a result of the existing events of default pursuant to the terms of the loan agreement, the other financing agreements and applicable law,” New Stream said in its letter.
New Stream further noted in its letter that, “While we have previously supported and continue to support the borrower’s attempts to liquidate its inventory in order to repay Lender, the sending of this letter should not be construed to limit the right of Lender to act without other or further notice to Borrower.”