Sep. 11 at 4:32 PM
$KPTI filed an 8-K today confirming a Forbearance Agreement and Limited Waiver across their term lenders, convertible noteholders, and royalty investors.
Key takeaways from the filing:
The default: Did not pay the ~
$15.8M principal installment due yesterday (Sept 10).
The runway: Creditors agreed to temporarily forbear until Oct 15, 2026 while the company negotiates restructuring, strategic alternatives, or an equity raise.
The cost: Incurred a
$20M forbearance fee paid via newly created 0% convertible preferred stock (
$1.62 conversion price).
Shares getting whacked this morning, down -18% to
$1.33 on the headline.
FWIW... this is why tracking bal sheet mechanics, debt covenants, and maturity dates matters just as much as clinical readouts. A filing catalyst buys attention; debt structure dictates survival.
(For those following along, as noted on Sept 1, I stepped aside from my position for a small profit off the
$1.80 entry to avoid holding through this exact binary.)
