Borealis Foods has received a default notice from its lender Frontwell Capital Partners in the latest blow to the Canada-based ramen noodles supplier.
In a filing with the US Securities and Exchange Commission on Friday (17 April), Borealis Foods said the counsel to Frontwell had sent a notice on 13 April saying the company and its subsidiaries have “failed to satisfy” a required "milestone" under a 27 March forbearance and amendment agreement.
The March agreement followed earlier defaults under Borealis Foods’ August 2023 credit facility with Frontwell.
Outstanding obligations under the credit agreement "were at least" $16.1m, including accrued interest, fees and expenses, the filing read.
It added: "The lender has not elected to terminate the forbearance period at this time but has reserved all rights in respect of the forbearance default."
Founded in 2019 by CEO Reza Soltanzadesh, Borealis Foods operates through its subsidiary Palmetto Gourmet Foods, which makes plant-based instant noodles at a 475,000-square-foot facility in Saluda, South Carolina.
Its brands include Chef Woo and Ramen Express.
In May 2025, Borealis warned about its ability to continue unless it raised fresh capital.
The group completed its Nasdaq listing in February of 2024 through a merger with Oxus Acquisition Corp.
Under the forbearance terms, Borealis Foods had to provide, by 9 April, a written plan showing how it would generate “sufficient proceeds” to repay all amounts outstanding under the Frontwell loan.
Borealis Foods said it submitted certain term sheets, but Frontwell concluded the “materials did not constitute a satisfactory plan”.
Missing that deadline puts Borealis in default under the forbearance deal, meaning Frontwell can end the grace period and demand immediate repayment.
The current forbearance period is due to expire on 27 April.
Borealis Foods said it is “evaluating alternatives to address its outstanding obligations, including potential refinancing, a capital-raising and other strategic transactions”.
It also warned there is “no assurance that the company will obtain alternative financing or that the lender will not elect to terminate the forbearance period and exercise its remedies”.
For the first nine months of 2025, Borealis reported net revenue of $21.1m, up about 1% from a year earlier. It booked a net loss of $12.5m, narrowing from a $19.5m loss previously.
