Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 77

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 77
---
 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, Portsmouth negotiated forbearance agreements
with both lenders on April 29, 2024, as discussed in Note 2 – Liquidity.

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, and representations and warranties. On January 3, 2025, Portsmouth 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