Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 109

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 109
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 be prepaid at any time without penalty. During the nine months ended March
31, 2025, Portsmouth borrowed an additional $11,615,000 to fund Hotel refinancing and Hotel operations. As of that date, the outstanding
balance was $38,108,000, and Portsmouth had not made any principal repayments. This facility remains a critical source of liquidity and
flexibility for Portsmouth. See also Note 11 – Related Party and Other Financing Transactions. Portsmouth has not made any paid-downs
to its note payable to InterGroup. All material intercompany accounts and transactions have been eliminated in consolidation.

Real
Estate

In
December 2024, the Company refinanced mortgage on its 157-unit apartment located in Florence, Kentucky in the amount of $9,800,000. The
term of the loan is approximately 10 years with an interest rate at 5.40%. The loan matures in January 2035.

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Liquidity
Requirements

The
Company’s short-term liquidity needs include:

●Hotel
                                            operating costs, including payroll, utilities, franchise and management fees,

●Corporate
                                            overhead and tax obligations,

●Interest
                                            payments and required loan maintenance under both senior and mezzanine debt agreements, and

●Routine
                                            repair and maintenance capital expenditures at the Hotel.

Long-term
liquidity requirements include:

●Scheduled
                                            debt maturities, including those disclosed in Note 11, and

●Capital
                                            improvements to maintain the competitiveness and operational standards of the Hotel under
                                            its Hilton franchise agreement.

The
Company intends to meet these obligations using a combination of:

●Available
                                            cash on hand,

●Operating
                                            cash flows,

●Draws
                                            under the InterGroup credit facility, and

●Other
                                            potential financing or equity alternatives.

Management’s
Liquidity Assessment

As
further discussed in Note 2 – Liquidity, the Company has taken proactive steps to stabilize its liquidity profile, including:

●Completion
                                            of a refinancing of its senior and mezzanine debt in March 2025,

●Continuing
                                            cost controls and selective capital expenditure deferrals,

●Strategic
                                            use of related party financing, and

●Maintenance
                                            of a lender-controlled lockbox cash management system.

While
management believes that current liquidity sources and available borrowing capacity will be sufficient to support near-term working capital
needs—even in the event of continued pressure on hotel performance indicators such as occupancy and Rev