Company: INTG
Filing Date: 2025-09-30
Form Type: 10-K
Source: 0001493152-25-016154
Chunk: 282

Company: INTERGROUP CORP
Filing Date: 2025-09-30
Form: 10-K
Item: Item 8
Chunk 282
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000,000. Subsequently, on December 31, 2021, following the dissolution of the Partnership, Portsmouth Square, Inc. (“Portsmouth”),
InterGroup’s majority-owned subsidiary and successor obligor, entered into a modification that (i) transferred the outstanding
obligation to Portsmouth following the Partnership’s dissolution on December 23, 2021 (then $11,350,000) and (ii) increased Portsmouth’s
borrowing limit to $16,000,000.

In
July 2023, the loan’s maturity date was extended to July 31, 2025, and the available borrowing capacity was increased to $20,000,000.
In connection with this increase, Portsmouth agreed to pay InterGroup 0.5% loan modification fee applicable to the additional $10,000,000.

In
March 2024, InterGroup and Portsmouth raised the available borrowing limit to $30,000,000, subject to an additional 0.5% modification
fee applicable to the $10,000,000 increase.

In
March 2025, InterGroup further increased the commitment to $40,000,000 and extended the maturity to July 31, 2027. In May 2025, InterGroup
reduced the facility’s fixed interest rate from 12% to 9%. The facility remains unsecured, interest-only, prepayable at any time
without penalty, with principal and accrued interest due at maturity.

During
the fiscal years ended June 30, 2025, and 2024, InterGroup advanced $11,615,000 and $10,793,000, respectively, to Portsmouth (principally
to support Hotel refinancing). As of June 30, 2025, and 2024, amounts due to InterGroup from Portsmouth under the facility totaled $38,108,000
and $26,493,000, respectively. As of June 30, 2025, Portsmouth had not made any principal repayments.

InterGroup
consolidates Portsmouth, the intercompany note receivable (InterGroup) and intercompany note payable (Portsmouth), together with related
intercompany interest income/expense, are eliminated in consolidation. The terms are disclosed for transparency regarding related-party
arrangements. InterGroup’s Audit Committee and Board of Directors reviewed and approved the related party loan agreements in accordance
with its related party transaction policy.

    62

Certain
shared costs and expenses -