Company: INTG
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021858
Chunk: 6

Company: INTERGROUP CORP
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 6
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 refinancing and operations. As of June 30, 2025, the outstanding balance was $38,108,000, with no principal repayments to date.
See also Note 9 – Related-Party and Other Financing Transactions. All material intercompany accounts and transactions have been
eliminated in consolidation.

InterGroup
Real Estate

During
the three months ended September 30, 2025, the Company did not enter into any new financing arrangements, modifications, or refinancings
related to its real estate properties.

-24-

All
existing loans and mortgage obligations remained in good standing, and there were no material changes to the terms, maturities, or covenants
of any existing debt instruments.

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 12, 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

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,

●Maintenance
                                            of access to related-party financing capacity; and

●Maintenance
                                            of a lender-controlled lockbox cash management system (see the Notes to the Condensed Consolidated
                                            Financial Statements – Debt).

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 RevPAR—there can be no
assurance that unforeseen market or operational conditions will not adversely affect the Company’s liquidity position.

The
Company continues to evaluate strategic alternatives and operational adjustments in response to ongoing macroeconomic and