Company: INTG
Filing Date: 2025-01-10
Form Type: 8-K
Source: 0001493152-25-001534
Chunk: 0

Company: INTERGROUP CORP
Filing Date: 2025-01-10
Form: 8-K
Item: Item 2.04
Chunk 0
---
Item       Triggering                                                                                                                 

On
January 3, 2025, The InterGroup Corporation (the “ Issuer” or the “ Company”) was made aware of a Notice of Termination
Event (the “ Notice”) issued to Justice Operating Company, LLC (“ Justice” or “ Borrower”), which is
the wholly owned subsidiary of Portsmouth Square, Inc. and received by Justice as of that date. The Notice states that the $97 million
principal amount in loans made to Justice by various institutional lenders, known as Loan No.: M300801016 / Reference No.: SS57524 and
Loan No.: M300801015 / Reference No.: SS57523, a termination event has occurred as a result of Borrower’s failure to pay Lender
the entire debt on or before the Forbearance Expiration date of January 1, 2025 under the Forbearance Agreement (the “ Forbearance”)
dated April 29, 2024. Accordingly, the forbearance as granted by Lender under the Forbearance Agreement has terminated. The Notice states
that the lenders shall immediately be entitled to exercise any of the Lender’s rights and remedies under the Forbearance Agreement
and the Loan Documents, in equity or at law. The Lender’s rights as a result of such termination, include, but are not limited
to, acceleration of the loans, foreclosure on collateral and other rights and remedies under the loan documents and otherwise available
under law. The Company cannot predict if or when the Lender will exercise any of these rights and remedies. In an effort to refinance
the Hotel’s aforementioned debt, in May 2024, Justice entered into a financing procurement agreement with a global provider of
financial advisory services to real estate owners; however, refinancing the company’s hotel debt has been extremely challenging
due to obstacles beyond the Company’s control. Justice will endeavor to refinance the aforementioned loans as soon as possible
or seek alternative solutions to resolve this situation. Additionally, in October 2024, Justice entered into an agreement with Hart Advisors
Group LLC (“ Hart”) to assist the Company in the negotiations of loan modifications for its senior and mezzanine loans with
maturity date of January 1, 2025. Justice and its mezzanine lender PCCP have submitted proposed loan modification terms to the senior
lender’s special servicer LNR Partners, LLC and other parties that are part of the loan. There is no assurance that any