Cherokee Global Brands, a brand marketing platform that manages a portfolio of fashion and lifestyle brands, amended its senior secured credit facility with Cerberus Capital Management.

“The amendment revises the financial covenants materially to enable the company to focus on growing the business for the long term. Importantly, as part of the amendment, we have eliminated the liquidity call which could have potentially resulted in the issuance of approximately $5.5 million in additional common stock. The amendment of our credit facility is a very positive development for the Company and important to stabilizing our balance sheet, sustaining liquidity and better positioning us for profitable future growth,” said said Henry Stupp, CEO of Cherokee Global Brands.

The amendment, among other things, eliminates the requirement that the company, under certain circumstances, exercise its rights to call the equity commitment rights under certain common stock purchase agreements dated August 11, 2017. Upon the effectiveness of the amendment, such commitments are expected to no longer be in effect, and none of the company, the lenders under the senior secured credit facility or the investors under such agreements would have the right to require the investors to purchase the company’s common stock under such agreements.

The amendment also provides that investors purchase participations from the lenders under the senior secured credit facility in an aggregate amount of no less than $11.5 million on or before December 8, 2017. The company is in advanced discussions with investors who have indicated an interest in purchasing such participation interests and anticipates that it will announce a completion of that investment on or before December 8, 2017.