RegulatoryApr 4, 2026, 07:41 AM
Medallion Financial Subsidiary Medallion Capital Faces SBA Default Notice on $73.5 Million in Debentures
AI Summary
Medallion Financial Corp.'s subsidiary, Medallion Capital, received a default notice from the Small Business Administration (SBA) regarding $73.5 million in debentures due to concerns about the management team. The SBA requires Medallion Capital to identify qualified candidates for its management team within 120 days, and failure to comply could result in the SBA declaring the debentures immediately due and payable.
Key Highlights
- SBA declared an event of default on Medallion Capital's debentures due to management team concerns.
- Medallion Capital has 120 days to identify and submit qualified management candidates to the SBA.
- Failure to comply could result in the SBA demanding immediate repayment of the $73.5 million debentures and accrued interest.
- The SBA's notice does not trigger cross-default clauses in Medallion Financial's other debt arrangements.