Fly-E Group hit with lender complaint seeking at least $3.9 million after credit facility default

Fly-E Group, Inc. disclosed in an 8-K dated 4 November 2026 that Peapack Private Bank & Trust, formerly Peapack-Gladstone Bank, filed a complaint on 30 October 2026 in the Supreme Court of the State of New York, County of Queens, against the company, two of its subsidiaries as co-borrowers, certain corporate guarantors and two individual guarantors. The complaint demands payment of all amounts outstanding under the company's revolving credit facility with the lender.

According to the 8-K, the complaint relates to a Revolving Credit Note with a maximum principal amount of $5,000,000 and a Loan and Security Agreement, both dated 5 August 2024, among the lender and Fly-E Group together with subsidiaries Fly E-Bike, Inc. and Fly EV, Inc. as borrowers. The obligations are secured by substantially all personal property of the borrowers and certain other subsidiaries, and are guaranteed by certain subsidiaries along with Zhou Ou, the company's chief executive officer, and Ke Zhang.

The filing states the credit facility matured on 31 August 2025 and that the lender agreed under a Forbearance Agreement dated 7 November 2025, as amended on 28 May 2026, to forbear from exercising certain remedies through 30 June 2026. The complaint alleges breaches of the credit facility and related guaranties and seeks at least $3.9 million in outstanding principal, jointly and severally, plus accrued interest including a post-forbearance rate of 15.375% per annum and default interest, late charges, and attorneys' fees, costs and expenses. It also seeks possession of the collateral, following the lender's 20 October 2026 demand that the borrowers assemble and turn over that collateral.

The 8-K says the company is reviewing the complaint and evaluating its defences and other available responses. The filing does not state the outcome of that review or any response the company has made to the court.