American Rebel Holdings, Inc. Enters Forbearance Agreement with Bank of America

Strategic Insights -

American Rebel Holdings, Inc.'s wholly-owned subsidiary, Champion Safe Company, Inc. (the "Borrower"), has been actively pursuing a refinancing of its debt with Bank of America. As a result of the Borrower's failure to make payment on the outstanding principal amount of the Term Loan, the Bank filed a complaint against the Borrower and its guarantors on March 21, 2025, seeking $1,906,742.88, plus outstanding and accruing attorneys' fees, all pre and post-judgment interest, and equitable relief. To address this situation, the Borrower and Bank of America have entered into a Forbearance Agreement, which will suspend the Bank's rights and remedies under the Credit Agreement through June 30, 2025. This agreement allows the Borrower to continue its refinancing efforts while avoiding potential litigation with the Bank.

Key Takeaways:

  • American Rebel Holdings, Inc.'s wholly-owned subsidiary, Champion Safe Company, Inc., failed to make payment on the outstanding principal amount of the Term Loan, resulting in a lawsuit against the Borrower and its guarantors seeking $1,906,742.88.
  • The Bank of America filed a complaint against the Borrower and guarantors on March 21, 2025, in the Fourth Judicial District Court, in and for Utah County, Utah.
  • The Forbearance Agreement, entered into on May 30, 2025, suspends the Bank's rights and remedies under the Credit Agreement until June 30, 2025.
  • The agreement allows the Borrower to continue its refinancing efforts with the Bank while avoiding potential litigation.
  • The Borrower and guarantors executed a Confession of Judgment and Verified Statement in connection with the Forbearance Agreement.
  • The Bank has agreed to a Forbearance Period until June 30, 2025, conditional on the Borrower and guarantors not breaching the terms of the Forbearance Agreement.

Statistics:

  • The lawsuit filed by the Bank against the Borrower and guarantors seeks a minimum of $1,906,742.88.
  • The Forbearance Period will last until June 30, 2025.
  • The Borrower's failure to make payment on the outstanding principal amount of the Term Loan resulted in litigation against the Borrower and its guarantors.
  • The Bank has agreed to a Forbearance Agreement, allowing the Borrower to continue refinancing efforts without immediate legal consequences.

Sources:

  • COMTEX, Form 8-K (May 30, 2025)
  • Bank of America Forbearance Agreement (Exhibit 10.1 to the Form 8-K filing)