On November 15, 2023, Charge Enterprises, Inc received a Default Letter from Arena Investors, LP alleging a violation concerning the Company's guarantee of subsidiary obligations. The Default Letter claims defaults on the Notes, demanding immediate payment of additional interest, fees, and partial liquidated damages. The Company disagrees with Arena's assertions and is in default of its obligations under the Notes.

Arena has not taken further action but might do so in the future. Efforts to resolve disagreements with Arena have been hindered, preventing the Company from refinancing the Notes. The Company is exploring legal options to enforce its rights but cannot guarantee a timely or favorable resolution, which may lead to litigation.

Litigation could be costly, time-consuming, and uncertain in outcome.