B. Riley Financial’s (NASDAQ:RILY) lenders have extended the deadline for the embattled brokerage and investment firm to produce an overdue 10-Q financial statement filing, according to a Wednesday media report. The extra time will allow the company to discuss amendments to its loan agreements, providing it with greater flexibility.
Bankers have waived the requirement for B. Riley (RILY) to provide financial statements within 45 days of the recent quarter’s end, averting what could have otherwise been considered a default, Bloomberg reported, citing people familiar with the matter.
(RILY) received last week a notification indicating the company isn’t in compliance with a Nasdaq listing rule due to the delay of its 10-Q financial statement filing.
While it’s still too early to determine if an agreement will be reached, new terms might surface by mid-September, one of the people told Bloomberg.
(RILY) shares dipped 2.6% in late morning trading, bringing its year-to-date plunge to 74%.
The company suspended its dividend earlier this month and plans to take a $433M-$475M charge for losses from its investment in Franchise Group and a related receivable. The U.S. Securities and Exchange Commission is investigating whether B. Riley (RILY) properly disclosed risks associated with some of its assets.