Quality Industrial Corp. Restructures $1.6M in Defaulted Convertible Notes, Secures Forbearance Through 2028
QIND sits 34% above its 52-week low of $0.005 on light trading volume (0.4× avg).
Summary
Quality Industrial Corp. restructured $1.587M in defaulted convertible notes into a $1.675M payment plan, securing forbearance from RB Capital Partners through March 2028. The agreement eliminates immediate default risk but imposes escalating monthly payments that will pressure the company's already strained finances.
Key Events · Financing and Capital Events · QIND
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Forbearance Agreement Signed
On July 10, 2026, Quality Industrial Corp. entered a forbearance agreement with RB Capital Partners, restructuring $1,587,439.64 in defaulted convertible notes into a $1,675,000 payment plan over 19 months, with forbearance from creditor remedies through March 2028.
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Payment Schedule Details
The company must make escalating monthly payments: four at $25,000, three at $50,000, three at $75,000, four at $100,000, three at $150,000, and two at $175,000, starting July 30, 2026. A $30,000 discount applies if the first 18 payments are made on time.
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Conversion Price Remains $1.00
The notes retain a $1.00 conversion price, far above the current $0.0071 stock price, making conversion economically unattractive and leaving the company with a cash repayment obligation rather than equity dilution.
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Default Risk and Acceleration
Any missed payment after a 10-business-day grace period and 10-day cure period triggers acceleration of the full unpaid balance, plus 5% annual interest, and ends the forbearance period.
Analysis · QIND · Technology
A forbearance agreement with RB Capital Partners gives Quality Industrial Corp. breathing room by restructuring $1.587 million in defaulted convertible notes into a $1.675 million payment plan spread over 19 months. The original notes, due in 2024 and 2025, carried a $1.00 conversion price—far above the current $0.0071 stock price—rendering conversion economically unviable and exposing the company to immediate enforcement. Under the new terms, creditor action is halted until March 2028 as long as the company meets escalating monthly payments that start at $25,000. This buys critical time for a company already under a going-concern warning and facing $2.47 million in defaulted convertible debt, but the back-loaded payment schedule means any default triggers acceleration of the full balance. While the restructuring removes near-term default risk, it adds a fixed cash obligation that will strain limited resources.
At the time of this filing, QIND was trading at $0.01 on OTC in the Technology sector, with a market capitalization of approximately $1.4M. The 52-week trading range was $0.01 to $0.04. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.