AmBase Corp 8-K

What Happened
AmBase Corp (ABCP) filed an 8-K reporting that in January 2025 the company entered into a Senior Promissory Note with its Chairman, President and CEO, Richard A. Bianco, under which Mr. Bianco loaned the company $100,000 at 6.5% annual interest for working capital and litigation expenses.

Key Details

• Loan amount: $100,000 provided by CEO Richard A. Bianco in January 2025.
• Interest: 6.5% per annum.
• Maturity: Due on the earlier of (a) the date the company receives funds from any source sufficient to pay amounts due under the Note (potentially excluding funds from litigation funders) — including settlement proceeds from the 111 West 57th legal proceedings — or (b) January 31, 2029.
• Conversion option: Mr. Bianco may, at his option, convert the outstanding principal and interest into a litigation funding agreement pari-passu with any litigation funding agreement the company enters with a third‑party funder.

Why It Matters
This filing shows the CEO personally provided short-term financing to keep AmBase operating and to support its 111 West 57th litigation. The note reinforces prior disclosures that the company has a going-concern qualification and is actively pursuing funding options (debt, equity, or litigation funding). Investors should note the loan’s repayment priority may be tied to future recoveries from litigation and that the conversion option could change how any recoveries are shared with third‑party funders.