Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 34

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 34
---
136,000 for the cap
at inception. The loan
                                            is secured by the Hotel.

●Mezzanine
                                            Loan: Mezzanine executed a modified Mezzanine Loan Agreement with CRED REIT Holdco LLC for
                                            a principal amount of $36,300,000 at a fixed rate of 7.25% per annum, on matching terms to
                                            the senior loan. The loan is secured by Mezzanine’s membership interest in Operating.

Portsmouth
and the Company continue to provide a limited guaranty in connection with both facilities. The Company is also subject to customary
covenants, including financial ratios and affirmative obligations.

D.
DSCR and Lockbox Arrangements

Operating
has not maintained compliance with the required Debt Service Coverage Ratio (“DSCR”) under both the original and refinanced
loans. This condition ordinarily triggers a lender-imposed cash management lockbox. However, such a lockbox mechanism was in place from
inception, and remains in effect through loan maturity, regardless of DSCR performance. Cash receipts from the Hotel are deposited into
lender-controlled accounts, with controlled disbursements based on agreed-upon budget approvals.

E.
Governance and Related Party Disclosure

All
of Portsmouth’s directors serve as directors of InterGroup — John V. Winfield, William J. Nance, John C. Love, Yvonne Murphy,
and Steve Grunwald. Mr. Winfield is Chairman of the Board and Chief Executive Officer of both Portsmouth and InterGroup. He served as
Managing Director of Justice until its dissolution in December 2021.

Portsmouth
encourages investments by its CEO and InterGroup in the same companies in which Portsmouth invests, as such alignment of interests places
personal and affiliate capital at risk alongside Company capital.

NOTE
12 – ACCOUNTS PAYABLE AND OTHER LIABILITIES

The
following summarizes the balances of accounts payable and other liabilities as of March 31, 2025 and June 30, 2024:

SCHEDULE
OF ACCOUNTS PAYABLE AND OTHER LIABILITIES 

    As
    of 
    March
    31, 2025  
    June
    30, 2024 
  
    Trade payable 
    $2,084,000  
    $2,999,000 
  
    Advance deposits 
     504,000  
     557,000 
  
    Property tax payable 
     361,000