JZ Capital Partners Limited announced that it has reached agreement with its senior lenders to amend the terms of its existing senior facility agreement. As announced on 8 October 2020, the Company had breached its minimum asset coverage ratio under the Senior Facility and was also in default under the facility having not agreed to amended terms with its senior lenders by 7 October 2020. It was also noted in that announcement that, if the existing or any other event of default under the Senior Facility were to continue, the Company would be prohibited from making payments to the holders of its Convertible Unsecured Loan Stock due 2021 on any subsequent CULS interest payment date, absent either a waiver, a further consent or the amended terms of the facility allowing for such payments to be made. The Company is however now pleased to announce that its senior lenders have waived the Company's aforementioned and other technical breaches and defaults, with agreement also having been reached as to the amended terms of the Senior Facility by way of the Company's entry into an amendment agreement to the facility with, among others, Guggenheim Partners Europe Limited as a senior lender, administrative agent for the senior lenders and collateral agent. Under the terms of the Amended Senior Facility, approximately US$40 million of the outstanding principal amount of approximately USD 150 million under the Senior Facility has been assigned from the existing lenders to clients and funds advised by Cohanzick Management, LLC and CrossingBridge Advisors, LLC. The replacement lenders (of approximately USD 40 millionof the outstanding principal amount) have agreed, pursuant to an agreement among lenders, to be subordinated to the existing lenders (of approximately USD 110 million of the outstanding principal amount) under the Amended Senior Facility. In exchange, it has been agreed under the Amended Senior Facility that the interest rate payable by the Company for the loans funded by the replacement lenders will accrue interest at a rate of Libor + 11.00%, instead of Libor + 5.75% as is applicable to the existing lenders. The Company has in turn secured more advantageous terms for itself including the minimum asset coverage covenant being reset (from not less than 4.00:1.00 to a lower threshold of initially not less than 3.25 to 1.00 and from completion of the recently announced Secondary Sale or 7 December 2020, whichever is earlier, not less than 3.50:1.00) and a relaxation of rating requirements, removal of certain concentration limits, updates to the use of proceeds requirements pertaining to asset sales to preserve liquidity, and reduced requirements related to its real estate collateral and reporting on investments. The Company has also agreed to certain limitations on permitted investments going forwards (consistent with its recently amended and restated investment policy), reductions to its permitted unsecured indebtedness and encumbrances, and certain restrictions on dividends until the senior debt is repaid. In addition, as part of the recently announced Secondary Sale, which is expected to close following approval of the Company's ordinary shareholders in early December 2020, the Company has agreed that US$70 million of any proceeds received by the Company from that sale and other recent sales will be used to repay the senior lenders. As mentioned above, the replacement lenders will be subordinated to the existing lenders under the Amended Senior Facility and as such the repayment of any such proceeds of USD 70 million will first be applied to the existing lenders, such that thereafter the outstanding loans from the existing lenders will be reduced from approximately USD 110 million to approximately USD 40 million and the outstanding loans from the replacement lenders will remain at approximately USD 40 million. Completion of the Secondary Sale by 7 December 2020 is, among others, a condition subsequent of the Amended Senior Facility. The term of the Amended Senior Facility remains as expiring on 12 June 2021 with repayment falling due on the same date, albeit with the possibility of extension in certain limited circumstances.