VIRGINIA BEACH, Va., June 2, 2014 /PRNewswire/ -- As previously disclosed, Waterside Capital Corporation (OTC: WSCC) (the "Company"), a Small Business Investment Company, is a party to a Loan Agreement (the "Loan Agreement") with the United States Small Business Administration (the "SBA"). Under the terms of the Loan Agreement, the Company's then existing debentures were repurchased effective September 1, 2010 by the SBA and a new debt instrument was put into place. The Company's debt to the SBA matured March 31, 2013.
As disclosed in the Company's Form 8-K filed with the U. S. Securities and Exchange Commission (the "SEC") on November 29, 2013 (the "Form 8-K"), the SBA filed a complaint in the United States District Court for the Eastern District of Virginia (the "Court") on November 20, 2013 seeking, among other things, receivership for the Company and a judgment in the amount outstanding under the Loan Agreement plus continuing interest (the "Complaint").
On May 28, 2014, with the Company's consent, the Court entered a Consent Order and Judgment Dismissing Counterclaim, Appointing Receiver, Granting Permanent Injunctive Relief and Granting Money Judgment against the Company (the "Order"). The Order appointed the SBA receiver of the Company for the purpose of marshaling and liquidating in an orderly manner all of the Company's assets and entered judgment in favor of the United States of America, on behalf of the SBA, against the Company in the amount of $11,770,722.31. Such amount represents $11,700,000 in principal and $70,722.31 in accrued interest under the Loan Agreement.
The Court assumed jurisdiction over the Company and the SBA was appointed receiver effective May 28, 2014.
About Waterside Capital Corporation
Waterside Capital Corporation is a Small Business Investment Company (SBIC) headquartered in Virginia Beach, Virginia with a portfolio with a cost basis of approximately $10 million of loans and investments in 9 companies located primarily in the Mid-Atlantic region. Visit Waterside's web site at www.watersidecapital.com.
SOURCE Waterside Capital Corporation