Company: INTG
Filing Date: 2025-02-14
Form Type: 10-Q
Source: 0001493152-25-006758
Chunk: 75

Company: INTERGROUP CORP
Filing Date: 2025-02-14
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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 Holdco LLC
in the amount of $20,000,000. The prior Mezzanine Loan which had a 9.75% per annum interest rate was paid off. Interest rate on the new
mezzanine loan is 7.25% and the loan matured on January 1, 2024. Interest only payments are due monthly. On April 29, 2024, CRED REIT
HOLDCO LLC (“Mezz Lender”) entered into a Forbearance Agreement (the “Mezz Forbearance Agreement”), all capitalized
terms in this paragraph are used as defined in the Mezz Forbearance Agreement) with Mezzanine, an indirect subsidiary of the Company.
Assuming no termination event occurs, Mezz Lender agreed to not take any action with respect to the loan facility set forth therein prior
to January 1, 2025. The Mezz Lender also has advanced $4.5 million for payment of the 10% principal paydown with respect to the Mortgage
Loan Forbearance Agreement (defined below). Retroactive to January 1, 2024, Mezzanine will be required to accrue an additional 4% default
interest and a 1% forbearance fee or $245,000. During the Forbearance Period, no payments were made due to the Mezz Lender until the
new maturity date or loan prepayment. Both forbearance agreements also contained customary and usual terms, events of default, transaction
fees, and representations and warranties and covenants for like transactions. On January 14, 2025, the mezzanine lender issued a Notice
of Default, stating that the forbearance had expired and that it, too, was entitled to exercise all available legal and contractual remedies.
However, on January 21, 2025, the Mezz Lender submitted a summary of terms and conditions describing the terms and conditions in which
the Mezz Lender would entertain a new mezzanine loan. Such terms and conditions were accepted by the Company but are subject to change
subject to satisfaction of due diligence, approval of investment committee by Mezz Lender and execution of loan agreements. The Company
is diligently working with Prime and Mezz Lender in order to complete the refinancing by March 2025 and while no absolute assurance can
be provided, the Company remains highly focused on finalizing the transaction.

Effective
May 11, 2017,