Bankruptcy: PORTSMOUTH SQUARE INC

Form Type: 8-K

Filing Date: 2025-01-10

Corporate Action: Bankruptcy

Type: Update

Accession Number: 000149315225001536

Filing Summary: On January 3, 2025, Portsmouth Square, Inc. was made aware of a termination event regarding a $97 million loan made to its wholly owned subsidiary, Justice Operating Company, LLC. This event was triggered by Justice's failure to repay the debt by the forbearance expiration date of January 1, 2025, leading to the termination of the forbearance agreement with lenders. The lenders are now entitled to exercise their rights under the loan documents, which may include acceleration of loans and foreclosure. The company is attempting to refinance its hotel debt but has faced challenges due to circumstances beyond its control. Additionally, Justice has engaged Hart Advisors Group LLC for negotiations around loan modifications for loans that mature on January 1, 2025. As of the filing date, the outstanding loans are approximately $78,640,922 for senior loans and $27,501,893 for mezzanine loans, with no guarantees on the success of ongoing negotiations.

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