Acceleration/Increase of Financial Obligation, Financial Obligation (Form 8-K)

Item 2.04 Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

As previously disclosed, on May 30, 2024, GlassBridge Enterprises, Inc. (the "Company") entered into a certain Limited Guaranty, Pledge and Security Agreement (the "Pledge Agreement") in favor of Western Alliance Bank ("WAB"). Pursuant to the Pledge Agreement, the Company pledged its right, title and interest in certain agreements related to mortgage servicing rights (the "Collateral") to WAB, as security for certain obligations of its third party servicer under such servicer's loan agreement with WAB (the "WAB Loan"). As of today, the amount outstanding under the WAB loan was approximately $34.1 million secured by Collateral with a fair market value of at least $61.9 million.

On June 11, 2025, the Company received a notice that its third party servicer had defaulted on the WAB Loan as a result of its (i) failure to maintain the level of liquid assets required under the WAB Loan, (ii) its failure to provide certain audited financial statements, and (iii) its temporary suspension as an approved seller of Fannie Mae Mortgage Loan pools. As a result, WAB may be entitled to foreclose upon the Collateral. The Company has been informed by its third party servicer that the default will be cured promptly and does not anticipate that any such foreclosure will occur.