Banc of California Inc. again postponed the filing of its financial results for the third quarter of 2016.
The Irvine, Calif.-based company amended its agreement with its lenders and administrative agent for a $75 million revolving credit line. The amendment extended to March 1 the deadline for Banc of California to deliver its financial statements for the quarter ended Sept. 30, 2016, to its administrative agent.
In November 2016, the company announced a delay in the filing of its Form 10-Q for the third quarter of 2016, saying that it is reviewing certain purported improper relationships and related party transactions. Near the end of that month, Wells Fargo Bank NA and Salt Lake City-based ZB NA agreed to waive their respective default rights related to the timely filing of the Form 10-Q under the credit agreement. Banc of California has $68 million outstanding under the credit line.
Banc of California is facing a class-action suit seeking to recover damages for market losses related to the company's alleged ties to Jason Galanis. Amid the allegations, Steven Sugarman resigned as chairman and CEO. Also, investor group Legion Partners LLC called for the appointment of new independent directors to the company's board and for the company to review all strategic alternatives, including a possible sale.