Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 176

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 7A
Chunk 176
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, 2025, assuming no termination event.

●Required
                                            a 10% principal paydown of $8,590,000.

●Included
                                            accrual of 4% default interest, retroactive to January 1, 2024, payable upon final maturity
                                            or prepayment.

●Included
                                            a 1% forbearance fee of $859,000, paid at execution.

●Operating
                                            continued timely monthly payments during the forbearance period.

●Guaranteed
                                            by Portsmouth.

Mezzanine
Loan Forbearance Agreement (CRED REIT Holdco LLC):

●Provided
                                            forbearance through January 1, 2025, contingent on no termination event.

●Mezzanine
                                            Lender advanced $4.5 million to cover the senior loan principal paydown.

●Required
                                            4% default interest accrual and a 1% forbearance fee ($245,000), both payable at final maturity
                                            or prepayment.

●No
                                            payments were required during the forbearance period.

●Guaranteed
                                            by Portsmouth.

Both
agreements contained customary covenants, events of default, and representations and warranties. On January 3, 2025, Operating received
a Notice of Termination from the Mortgage Lender, citing a termination event for failure to repay the debt by the forbearance expiration.
On January 14, 2025, the Mezzanine Lender issued a Notice of Default, asserting its rights to pursue all remedies under the agreement.

These
defaults were the primary contributors to Portsmouth’s substantial doubt assessment under ASC 205-40, as disclosed in Note 2 –
Liquidity.

    53

C.
Debt Refinancing Completed on March 28, 2025

On
January 21, 2025, Portsmouth executed a non-binding term sheet with Prime Finance (“Prime”) for a new senior loan. On March
28, 2025, Portsmouth’s subsidiaries closed on both a senior mortgage loan and modified mezzanine loan (collectively, the “Loan
Agreements”), fully retiring the prior debt with U.S. Bank and CRED REIT Holdco LLC. In connection with the March 28, 2025 closing,
all prior guaranties and credit documents related to the 2013/2017 facilities were terminated and replaced by the 2025 senior Loan Agreement
and amended mezzanine documents.

●