Fly-E Group Faces Lender Lawsuit Seeking $3.9 Million and Loan Collateral

Fly-E Group, Inc. (Nasdaq: FLYE) said in an 8-K filed Wednesday that its lender, Peapack Private Bank & Trust, has sued the company and several related parties to collect the full balance of a revolving credit facility. The complaint was submitted Oct. 30 in the Supreme Court of the State of New York, Queens County.

Who is named and what is pledged

The defendants include the company, two of its subsidiaries as co-borrowers, certain corporate guarantors, and two individual guarantors, among them Chief Executive Officer Zhou Ou and Ke Zhang. The borrowers under the facility are the company, Fly E-Bike, Inc. and Fly EV, Inc.

The obligations rest on a Revolving Credit Note with a maximum principal amount of $5,000,000 and a Loan and Security Agreement, both dated Aug. 5, 2024. The obligations are secured by substantially all of the personal property of the borrowers and certain other subsidiaries. The complaint also seeks possession of that collateral after the lender demanded on Oct. 20 that the borrowers assemble it and turn it over.

A loan that had already come due

The credit facility matured on Aug. 31, 2025. The lender then agreed, under a forbearance agreement dated Nov. 7, 2025 and amended May 28, 2026, to hold off on certain remedies through June 30, 2026. The complaint now seeks at least $3.9 million in outstanding principal, plus accrued interest at a post-forbearance rate of 15.375% a year, default interest, late charges, and attorneys' fees, costs and expenses. The defendants are liable jointly and severally, according to the filing.

The complaint alleges breaches of the credit facility and the related guaranties. The company filed the report under Item 2.04 of 8-K forms, which covers events that accelerate a direct financial obligation.

What the figures mean for a company this size

At $1.70, the last close before the filing on Wednesday, Nov. 4, the company's market capitalization was about $2.8 million, based on 1.6 million shares as of Sept. 1, 2026. The principal the lender seeks is larger than that figure.

The company reported $60 thousand in cash and equivalents, including restricted cash, as of June 30, 2026. In the quarter ended June 30, 2026, revenue was $2.7 million, down 48% from a year earlier, and the net loss was $3.9 million, compared with $2.0 million a year earlier, so the loss widened. For the fiscal year ended March 31, 2026, revenue was $19.1 million, down 25%, and the net loss was $9.3 million, compared with $5.3 million the year before, also a wider loss.

In a separate 8-K filed Sept. 3, 2026, the company disclosed a Nasdaq notice tied to a failure to meet a listing standard.

What happens next

The company said it is reviewing the complaint and evaluating its defenses and other available responses. The company did not say when it expects to respond to the court or whether it intends to contest each claim.