As previously reported, AAC Holdings, Inc., a Nevada corporation (the Company), entered into that certain Credit Agreement,
dated as of March 8, 2019, together with Credit Suisse AG, as administrative agent and collateral agent, and the lenders party thereto (the 2019 Credit Facility), and that certain Credit Agreement, dated as of June 30,
2017, together with Credit Suisse AG, as administrative agent and collateral agent, and the lenders party thereto (as amended, the 2017 Credit Facility and, together with the 2019 Credit Facility, the Credit
Facilities). Also as previously reported, on October 30, 2019, the Company entered into forbearance agreements (together, the Forbearance Agreements) with the applicable lenders (the Forbearing
Lenders) and agents in respect of the Credit Facilities, pursuant to which, among other things, the Forbearing Lenders agreed to forbear from exercising their respective creditors remedies under the Credit Facilities that would have
otherwise been available due to the existence of certain events of default by the Company under the Credit Facilities.
On January 9,
2020, the Forbearing Lenders delivered to the Company notice of the termination of the respective forbearance periods under the Forbearance Agreements due to, among other things, the continuance of certain events of default under the Credit
Facilities and the failure of the Company under the Forbearance Agreements to have provided the Forbearing Lenders with a three-year business plan for the Company. Due to the foregoing termination of the forbearance periods, the lenders under the
Credit Facilities may now exercise any and all creditors remedies available to such lenders in respect of the Credit Facilities, including, without limitation, the lenders right to accelerate the respective maturities of, and make
immediately due and payable, all amounts currently outstanding under the Credit Facilities due the Companys continuing default of certain of its obligations thereunder.
The Company is currently negotiating with the Forbearing Lenders both potential amendments to the Forbearance Agreements that would
reinstitute such lenders agreements to forbear from exercising their respective creditors remedies with respect to the Credit Facilities, as well as additional incremental funding; however, there can be no assurance that the Company will
successfully consummate such amendments or receive any such funding on terms acceptable to the Company or at all.