Borealis Foods Gets Default Notice From Lender

Credit: Borealis Foods/PRNewswire.

Borealis Foods has received a default announcement from its lender Frontwell Capital Partners successful nan latest rustle to nan Canada-based ramen noodles supplier.

In a filing pinch nan US Securities and Exchange Commission connected Friday (17 April), Borealis Foods said nan counsel to Frontwell had sent a announcement connected 13 April saying nan institution and its subsidiaries person “failed to satisfy” a required “milestone” nether a 27 March forbearance and amendment agreement.  

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to scope engaged professionals crossed 36 starring media platforms.

Find retired much

The March statement followed earlier defaults nether Borealis Foods’ August 2023 in installments installation with Frontwell. 

Outstanding obligations nether nan in installments statement “were astatine least” $16.1m, including accrued interest, fees and expenses, nan filing read.

It added: “The lender has not elected to terminate nan forbearance play astatine this clip but has reserved each authorities successful respect of nan forbearance default.”

Founded successful 2019 by CEO Reza Soltanzadesh, Borealis Foods operates through its subsidiary Palmetto Gourmet Foods, which makes plant-based instant noodles astatine a 475,000-square-foot installation successful Saluda, South Carolina.  

Its brands see Chef Woo and Ramen Express. 

In May 2025, Borealis warned astir its ability to continue unless it raised caller capital.  

The group completed its Nasdaq listing in February of 2024 done a merger pinch Oxus Acquisition Corp. 

Under nan forbearance terms, Borealis Foods had to provide, by 9 April, a written scheme showing really it would make “sufficient proceeds” to repay each amounts outstanding nether nan Frontwell loan.  

Borealis Foods said it submitted certain word sheets, but Frontwell concluded nan “materials did not represent a satisfactory plan”. 

Missing that deadline puts Borealis successful default nether nan forbearance deal, meaning Frontwell tin extremity nan grace play and request contiguous repayment.

The existent forbearance play is owed to expire connected 27 April. 

Borealis Foods said it is “evaluating alternatives to reside its outstanding obligations, including imaginable refinancing, a capital-raising and different strategical transactions”.  

It besides warned location is “no assurance that nan institution will get replacement financing aliases that nan lender will not elite to terminate nan forbearance play and workout its remedies”. 

For nan first 9 months of 2025, Borealis reported nett gross of $21.1m, up astir 1% from a twelvemonth earlier. It booked a nett nonaccomplishment of $12.5m, narrowing from a $19.5m nonaccomplishment previously.