Horizon Group Properties Completes Deed-In-Lieu of Foreclosure Transaction

Rhea-AI Summary

Horizon Group Properties, Inc. (OTC: HGPI) has successfully completed a deed-in-lieu of foreclosure transaction involving three outlet shopping centers located in Burlington, Fremont, and Oshkosh. These properties served as collateral for a non-recourse loan. As part of the transaction, the company received a covenant not to sue from the lender, and is expected to report a gain of approximately $14 million. This strategic move may help stabilize the company's financial position amidst ongoing challenges in the retail sector.

Positive

• Gain of approximately $14 million from the deed-in-lieu of foreclosure transaction.
• Received a covenant not to sue from the lender, potentially easing legal and financial liabilities.

Negative

• The transaction indicates financial distress, as it involved foreclosure.
• The reliance on non-recourse loans may limit future financing options.

ROSEMONT, Ill.--(BUSINESS WIRE)-- Horizon Group Properties, Inc. (OTC: HGPI.PK) today announced that it had completed a deed-in-lieu of foreclosure transaction involving The Outlet Shoppes at Burlington (Washington), The Outlet Shoppes at Fremont (Indiana) and The Outlet Shoppes at Oshkosh (Wisconsin). The three properties were collateral for a single non-recourse loan. The Company received a covenant not to sue from the lender as part of the transaction. The Company will report a gain of approximately $14 million in connection with the transaction.

About Horizon Group Properties

Based in Rosemont, IL, Horizon Group Properties, Inc. (OTC:HGPI.PK) is an owner and developer of outlet shopping centers in the U.S., and developer of a master planned community in suburban Chicago. Additional information can be found at www.horizongroup.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210916005843/en/

Connie Dyer

SVP, Marketing

(847) 653-6466

cdyer@horizongroup.com

Source: Horizon Group Properties, Inc.

FAQ

What properties were involved in Horizon Group Properties' recent foreclosure transaction?

The properties involved are The Outlet Shoppes at Burlington, Fremont, and Oshkosh.

What financial gain did Horizon Group Properties report from the deed-in-lieu transaction?

Horizon Group Properties reported a gain of approximately $14 million from the transaction.

What does the covenant not to sue mean for Horizon Group Properties?

The covenant not to sue means that the lender will not pursue legal action against the company as part of the transaction.

How does the deed-in-lieu of foreclosure impact Horizon Group Properties' financial situation?

The deed-in-lieu transaction is a response to financial distress, indicating potential challenges in the company's cash flow and asset management.

What is the stock symbol for Horizon Group Properties?

The stock symbol for Horizon Group Properties is HGPI.