PORTSMOUTH SQUARE INC (PRSI): debt financing — Portsmouth Square's subsidiary receives $97M loan default notice; lenders can accelerate or foreclose

PORTSMOUTH SQUARE INC

On Jan 4, 2024, Justice Operating Company received a notice of default on $97M in loans from institutional lenders.
The default triggers lenders' rights including acceleration of loans and foreclosure on collateral.
Company engaged Hart Advisors Group in Sep 2023 for loan modifications; proposed terms under review by special servicer LNR Partners.
No assurance negotiations will resolve in Justice's favor; lenders' rights are not limited by these discussions.

item 2.04 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

PORTSMOUTH SQUARE INC reported a default on loan of $97 million with various institutional lenders.

Instrument: loan
Principal: $97 million
Counterparty: various institutional lenders
Event: default

Exact text from the filing

On January 4, 2024, Portsmouth Square, Inc. (the “Issuer”or the “Company”) was made aware of a notice of default (the “Notice”) issued to Justice Operating Company, LLC, which is the wholly owned subsidiary of Portsmouth Square, Inc. (“Justice”) and received by Justice as of that date. The Notice states that the $97 million principal amount in loans made to Justice by various institutional lenders, known as Loan No.: M300801016 / Reference No.: SS57524 and Loan No.: M300801015 / Reference No.: SS57523, are in default.

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Source: SEC EDGAR

accession 0001493152-24-001948

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