XTI Aerospace's subsidiary failed to make scheduled principal payments of $1.38 million and $120,000 due September 30, 2026, on promissory notes totaling approximately $4.51 million in outstanding principal and interest. This failure constitutes an event of default under the seller notes and triggers cross-default provisions under a $20 million secured asset-based revolving credit facility with JPMorgan Chase Bank. As of October 16, 2026, approximately $8.4 million was outstanding under the credit agreement. The company has agreed to temporary waivers subject to execution but intends to pursue restructuring; however, lenders have not yet consented to waive defaults or continue lending. XTI Aerospace operates in the aerospace and defense sector, manufacturing unmanned aerial systems.
