Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 519

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 8
Chunk 519
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 August 1, 2019, to discuss a collaborative process for the possible removal of the Bridge. Until the purported revocation of the
Permit in 2022, the City representatives repeatedly and consistently promised and agreed that the City would pay for the associated costs
of any Bridge removal and restoration of the front of the Hotel’s back to its current condition. Nevertheless, without waiving
any rights, in an effort to understand all of the available options, and to provide a response to the City’s directives, Operating
has engaged a Project Manager, a structural engineering firm and an architect to advise on the development of a Plan for the Bridge removal,
as well as the reconstruction of the front of the Hilton Hotel. Operating has been working cooperatively with the City on the process
of the removal of the Bridge and its related physical encroachments, including obtaining regulatory approvals and permits. Discussions
are ongoing with the City regarding both the process and financial responsibility for the implementation of the Plan and reconstruction
of the portions impacted of the Hotel. Those discussions are expected to continue at least through the third calendar quarter of 2025.
A final Plan is currently expected to be completed and submitted for approval in late 2025; permits for demolition are unlikely to be
obtained before early 2026, with demolition not anticipated before March 2026 at the earliest.

At
this time, the Company cannot reasonably estimate the probability or amount of any loss, contribution, or recovery related to this matter;
accordingly, no accrual has been recorded under ASC 450. From time to time, InterGroup and its subsidiaries may be involved in legal
proceedings arising in the ordinary course of business. Management intends to defend such matters vigorously. Based on information currently
available, management does not believe the ultimate resolution of such matters will have a material adverse effect on the Company’s
consolidated financial position, results of operations, or cash flows.

    64

NOTE
18— ASSETS HELD FOR SALE

On
February 24, 2025, the Company executed a listing agreement to market for sale a 12-unit multifamily property located in Los Angeles
County, California (10,600 square feet; acquired July 30, 1999). Active marketing commenced in April 2025. Management committed to a
plan to sell the property, is available for immediate sale in its present condition, it is being actively marketed at a price commensurate
with current market conditions, and a sale