Company: INTG
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006758
Chunk: 74

Company: INTERGROUP CORP
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 74
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 lenders (“Lender”) entered into a Forbearance Agreement (the “Mortgage Loan Forbearance Agreement”).
Assuming no Termination Event occurs, Lender agrees to not take any action with respect to the loan facility set forth therein prior
to January 1, 2025. During the Forbearance Period, Operating made all regularly scheduled payments to the Lender. The Mortgage Loan Forbearance
Agreement also contained amended terms as to financial covenants and a 10% principal paydown in the amount of $8,589,706.44 to be applied
by the Lender upon execution of the Mortgage Loan Forbearance Agreement. Retroactive to January 1, 2024, Operating is required to accrue
an additional 4% default interest, due and payable to Lender at the new maturity or loan prepayment. In addition, Operating paid 1% forbearance
fee or $858,971 to Lender upon execution of the Forbearance Agreement. On January 3, 2025, the Company received a Notice of Termination
from the senior loan special servicer, citing a termination event due to the Company’s failure to fully repay the debt by the forbearance
expiration date. On January 21, 2025, the Company entered into a non-binding Term Sheet with Prime Finance (“Prime”) to refinance
the senior mortgage loan. The Company is in advanced discussions with Prime and due diligence is taking place and believes that, based
on the progress of negotiations, refinancing will be successfully completed by March 2025. While no absolute assurance can be provided,
the Company remains highly focused on finalizing the transaction. Additionally, it is in discussions with its existing lenders regarding
a potential extension of the current debt terms, should more time be required.

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The
mezzanine loan is secured by the Operating membership interest held by Mezzanine and is subordinated to the Mortgage Loan. The mezzanine
interest only loan had an interest rate of 9.75% per annum and a maturity date of January 1, 2024. As additional security for the mezzanine
loan, there is a limited guaranty executed by Portsmouth in favor of the mezzanine lender. On July 31, 2019, Mezzanine refinanced the
mezzanine loan by entering into a new mezzanine loan agreement (“New Mezzanine Loan Agreement”) with Cred Reit