Borealis Foods shares surge 30.87% after-hours after paying down revolving loans to meet lender's borrowing base requirements following default notice.

Borealis Foods Inc. surged 30.87% in after-hours trading following a detailed announcement addressing its default notice from primary lender Frontwell Capital Partners. The company disclosed that it had reduced its revolving loan balance from $10.23 million to $3.55 million since October 21, re-establishing compliance with the credit agreement’s borrowing base requirements. It also confirmed submission of required financial reports and cooperation with the lender, while noting the lender had not yet accelerated loan obligations. Investors likely interpreted these proactive debt-reduction measures and renewed compliance as positive signals amid the default dispute, mitigating concerns over liquidity restrictions and potential further action by the lender. The after-hours rally reflects optimism that the company’s efforts could stabilize its financial position and avoid more severe credit enforcement actions.