Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 24

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 1
Chunk 24
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 9.75% per annum and maturing concurrently with the senior loan, was secured by the membership
interests of Justice Operating Company, LLC (“Operating”), held by Justice Mezzanine Company, LLC (“Mezzanine”),
and was subordinated to the mortgage debt. The mezzanine loan was refinanced in July 2019 through a new agreement with CRED REIT Holdco
LLC (“Mezzanine Lender”) in the amount of $20,000,000, at a reduced fixed interest rate of 7.25%, also maturing on January
1, 2024.

As
of June 30, 2024, the outstanding mortgage loan balance was $76,962,000. As of December 31, 2024, the outstanding balance was $75,789,000.

B.
Forbearance Agreements and Defaults

Due
to the maturity of both loans on January 1, 2024, and the absence of full repayment by that date, the Company negotiated forbearance
agreements with both lenders on April 29, 2024.

Mortgage
Loan Forbearance Agreement (U.S. Bank and others, the “Mortgage Lender”):

●Provided
                                            forbearance through January 1, 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