Company: INTG
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006758
Chunk: 14

Company: INTERGROUP CORP
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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3. On December 16, 2020, the Partnership and InterGroup entered into a loan
modification agreement which increased the Partnership’s borrowing from InterGroup as needed up to $10,000,000. On December 31,
2021, Portsmouth and InterGroup entered into a loan modification agreement which increased Portsmouth’s borrowing from InterGroup
as needed up to $16,000,000. Upon the dissolution of the Partnership in December 2021, Portsmouth assumed the Partnership’s note
payable to InterGroup in the amount of $11,350,000. In July 2023, the note maturity date was extended to July 31, 2025 and the borrowing
amount available was increased to $20,000,000. The Company agreed to a 0.5% loan extension and modification fee payable to InterGroup.
In March 2024, Portsmouth and InterGroup entered into a loan modification agreement which increased Portsmouth’s borrowing amount
to $30,000,000. Portsmouth agreed to a 0.5% loan modification fee for the increased borrowing of $10,000,000 payable to InterGroup. As
of June 30, 2024, the balance of the loan was $26,493,000 net of loan amortization costs of zero. As of December 31, 2024, the balance
of the loan was $27,622,000 and the Company has not made any paid-downs to its note payable to InterGroup. All material intercompany
accounts and transactions have been eliminated in consolidation.

In
December 2024, the Company refinanced mortgage on its 157-unit apartment located in Florence, Kentucky in the amount of $9,800,000. The
new 10-year interest only loan has an interest rate of 5.40%. The loan matures in January 2035.

The
Company’s known short-term liquidity requirements primarily consist of funds necessary to pay for operating and other expenditures,
including management and franchise fees, corporate expenses, payroll and related costs, taxes, interest and principal payments on our
outstanding indebtedness, and repairs and maintenance at all our properties.

    -10-

Our
long-term liquidity requirements primarily consist of funds necessary to pay for scheduled debt maturities and capital improvements of
the Hotel and our real estate properties. We will continue to finance our business activities primarily with existing cash, including
from the activities described above, and cash generated from our operations. The objectives of our cash management policy are to