Atlantic International Corp. Lawsuit Against SPP Credit Advisors, LLC

Atlantic International Corp. and its Lyneer subsidiaries have filed a lawsuit in the Supreme Court of the State of New York against SPP Credit Advisors, LLC. The company is seeking a preliminary injunction to prevent SPP from taking any management or operational actions, interfering with the Lyneer subsidiaries, seizing property, or exercising remedies under loan documents following SPP's Notices of Default. Atlantic alleges that SPP initiated a "coordinated, pre-planned attack" to seize control based on a "fabricated default," despite the outstanding debt having been satisfied by the proceeds from the sale of Atlantic shares. SPP had acknowledged the collateral value exceeded the debt and agreed to remit the surplus. Atlantic also reported that SPP issued default notices under both a term loan and a bridge loan, asserting breaches of financial and non-financial covenants. In response to these events, Mathew Evelt resigned as Chief Operating Officer, alleging differences in strategic direction and lack of payment, claims which the company disputes. The company became aware that Mr. Evelt accepted a position with SPP and is supporting their efforts, leading Atlantic to terminate his employment "for Cause" due to alleged egregious misconduct.