On 5 July, Vince Holding Corp (VNCE) announced a credit amendment agreement has been reached with both its ABL and term loan lending groups. The recent term loan amendment waives the net leverage ratio covenant requirement through 1Q19, which we previously expected the company’s compliance to necessitate the use of further equity cures. The company also filed a Form S-3, for a proposed rights offering, backstopped by sponsor, Sun Capital for up to USD 30m. Although near-term liquidity needs and covenant compliance doubts may now be addressed in the near-term, VNCE still needs to address a deteriorating business. Also, even assuming a successful close of the rights offering, we still consider liquidity and not-so-distant maturities significant concerns, considering the company’s high cash burn rate. VNCE’s stock opened trading today at USD 0.46 per share, up slightly since our last report in May.