Quantum Corporation, a provider of technology, software and services, secured amendments to its term loan and revolving credit agreement that, among other things, waived the covenant requirements related to financial statements prepared in accordance with GAAP for the fiscal quarter ended Dec, 31, 2023. The amendments also waived financial covenants related to the company’s total net leverage ratio for the same fiscal period. Additionally, the agreements established informational updates and coordination on business initiatives with the company’s lenders. Per the revised agreements, the company has through May 15 to resume financial compliance.

According to an 8K filed with the SEC detailing the specifics of the amendment and waivers, Blue Torch Finance is the disbursing agent and collateral agent for the lenders for the facilities.

Consistent with prior announcements, Quantum continues to work through its ASC 606 re-evaluation and has increased confidence in reaching an amenable resolution no later than March 31. Quantum also remains committed to be current with its SEC financial filings by May 7. During this time, the company has been prioritizing several financial and business projects targeting improvements to working capital, acceleration of new products and a more focused business.

“These amended agreements reflect the strong partnership we have with our lenders in support of the company’s path forward as we work to complete the SSP re-evaluation process, resume timely filings of the company’s financial statements and drive the business toward our long-term model,” Jamie Lerner, chairman and CEO of Quantum, said. “In addition, we are pursuing tangible strategic opportunities to pay down debt as well as improve the company’s operational and business outlook.”