Company: INTG
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010724
Chunk: 33

Company: INTERGROUP CORP
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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●Included
                                            a 1% forbearance fee of $859,000, paid at execution.

●Operating
                                            continued timely monthly payments during the forbearance period.

●Guaranteed
                                            by Portsmouth.

Mezzanine
Loan Forbearance Agreement (CRED REIT Holdco LLC):

●Provided
                                            forbearance through January 1, 2025, contingent on no termination event.

●Mezzanine
                                            Lender advanced $4.5 million to cover the senior loan principal paydown.

●Required
                                            4% default interest accrual and a 1% forbearance fee ($245,000), both payable at final maturity
                                            or prepayment.

●No
                                            payments were required during the forbearance period.

●Guaranteed
                                            by Portsmouth.

Both
agreements contained customary covenants, events of default, and representations and warranties. On January 3, 2025, Portsmouth received
a Notice of Termination from the Mortgage Lender, citing a termination event for failure to repay the debt by the forbearance expiration.
On January 14, 2025, the Mezzanine Lender issued a Notice of Default, asserting its rights to pursue all remedies under the agreement.

These
defaults were the primary contributors to Portsmouth’s substantial doubt assessment under ASC 205-40, as disclosed in Note 2 –
Liquidity.

    -19-

C.
Debt Refinancing Completed on March 28, 2025

On
January 21, 2025, Portsmouth executed a non-binding term sheet with Prime Finance (“Prime”) for a new senior loan. On March
28, 2025, Portsmouth closed on both a senior mortgage loan and modified mezzanine loan (collectively, the “Loan Agreements”),
fully retiring the prior debt with U.S. Bank and CRED REIT Holdco LLC.

●Mortgage
                                            Loan: Operating entered into a $67,000,000 Mortgage Loan Agreement with Prime. The loan bears
                                            interest at SOFR + 4.75%, with a SOFR cap of 4.50%, and matures in two years with three one-year
                                            extension options, subject to satisfaction of financial and operational covenants. The Interest Rate Cap caps Term SOFR at 4.50% and has a notional amount
equal to or greater than the outstanding principal balance of the loan. The Company paid a premium of approximately $