FGI Industries Ltd. 8-K

What Happened
FGI Industries Ltd. announced on March 27, 2026 that its wholly owned subsidiary, FGI Industries, Inc., entered into an Amended and Restated Business Loan Agreement with East West Bank. The agreement amends and restates the existing credit facility, extends the maturity date to April 17, 2027, and keeps a maximum borrowing amount of $18,000,000 (subject to borrowing base limitations). The facility is secured by substantially all assets of FGI Industries and is guaranteed by FGI, certain subsidiaries, and Liang Chou Chen (who holds ~49.91% voting control of Foremost Groups Ltd.).

Key Details

• Lender: East West Bank; Borrower: FGI Industries, Inc.; agreement date: March 27, 2026.
• Maximum borrowing amount: $18,000,000, collateralized by all assets and subject to borrowing base limits.
• Financial covenants: monthly-tested aggregate year-to-date EBITDA thresholds of up to $1.6M (consolidated) and $1.4M (unconsolidated); limits on intercompany loans and affiliate transactions; periodic reporting required.
• Interest: variable at Prime Rate (WSJ) plus margin of 0%–1.5% tied to trailing 12-month EBITDA, subject to a 4.500% per annum minimum. Events of default are customary and may allow acceleration of amounts owed.

Why It Matters
This filing confirms FGI has renewed and extended its primary credit facility, which affects the company’s liquidity and debt profile. The $18M secured line and the covenant tests (EBITDA thresholds, limits on related-party activity, and reporting requirements) set operational and financial conditions the company must meet. Investors should note the collateralization, guarantees, and default provisions because they affect creditor rights and the company’s flexibility if financial performance weakens.