T REIT LIQUIDATING TRUST FILES (8-K) Disclosing Triggering Events That Accelerate or Increase a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement, Other Events
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Item 2.04 Triggering Events That Accelerate or Increase Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.
In addition, the Lenders allege that the tangible net worth of NNNRI, a guarantor of the Loan and our advisor, has fallen below
One of the possible consequences of an Event of Default under the Security Agreement is acceleration of the notes evidencing the related loan in the original principal amount of
The current principal amount outstanding under the Loan as of
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We own a 42.5% membership interest in
Item 8.01 Other Events.
As reported elsewhere in this Current Report on Form 8-K, Daymark received the
In addition, the Lenders allege that the tangible net worth of NNNRI, a guarantor of the Loan and our advisor, has fallen below
One of the possible consequences of an Event of Default under the Security Agreement is acceleration of the notes evidencing the Loan, at the option of the Lenders. Other consequences of an Event of Default under the Security Agreement include payment of a "make whole premium" to the Lenders, and payment of increased default-rate interest on both the then outstanding amount of the Loan and any "make whole premium" for the duration of any Event of Default. In addition, in the Event of Default, the Lenders have the right under the Security Agreement to take possession of the premises, foreclose the lien on the subject property and sell the premises independent of the foreclosure proceedings. In such event, the Lenders' costs, including legal fees, of foreclosure proceedings and the sale of the premises are recoverable by the Lenders as additional indebtedness.
The Loan is currently not in arrears as to any amounts due thereunder.
Following receipt of the
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By letter dated
Having failed to receive any meaningful response following the issuance of the First Daymark Letter, by letter dated
In addition, Daymark notified the Lenders that a major tenant of Congress Center has demanded that its tenant improvements be provided, as required under its lease. Another major tenant of Congress Center has indicated that it is evaluating its remedies as a result of the failure for their tenant improvements to be provided.
Daymark received a letter dated
Additionally, the Lenders for the first time took the position that because of an alleged failure of the borrowers to meet certain conditions set forth in the Lenders' Consent, the Lenders are now unwilling to fund tenant improvements at the agreed-upon increased levels (
Daymark is evaluating its position in light of PGI's Response. It is also attempting to address the issues raised in the
We own a 42.5% membership interest in NNNCC, which is a borrower under the Loan and which owns a 28.9% tenant-in-common interest in Congress Center. Our sole asset is this 10.3% indirect ownership interest in Congress Center. Any default with respect to the Loan, which is not cured or waived by the Lenders, would have significant adverse consequences for us.
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