Borealis Foods Inc. has filed an 8-K report detailing its entry into a Forbearance and Amendment Agreement with Frontwell Capital Partners Inc. on March 27, 2026. This agreement comes in response to several defaults under the existing Credit Agreement, including failures to maintain required Excess Availability and timely deliver financial statements. As part of the agreement, the company has appointed Jeffrey T. Varsalone as Chief Restructuring Officer to oversee its restructuring efforts. The Forbearance Agreement allows the lender to temporarily forbear from exercising rights related to these defaults until April 27, 2026, provided the company meets certain milestones, including the delivery of a refinancing plan. The outstanding obligations under the Credit Agreement are reported to be at least $16.1 million, plus accrued interest and fees. The company is currently evaluating strategic alternatives, including potential equity raises and refinancing transactions, but there is no assurance of success in these efforts. The situation poses significant risks to the company's financial stability and could lead to further actions by the lender if milestones are not met.

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