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Subsequent Events
6 Months Ended
Jun. 30, 2015
Subsequent Events [Abstract]  
Subsequent Events

 

Subsequent Events

 

On July 1, 2015 the Company closed on the sale of a Days Inn in Ashland, Kentucky (63 rooms) to an unaffiliated buyer for a gross sales price of $2.2 million. Partial proceeds of $1.3 million were applied to the associated debt with GE, with the remainder going to cash.

On July 13, 2015, the Company closed on the sale of two hotels in Alexandria, Virginia with a combined gross sale price of $19.0 million. Partial net proceeds of $8.3 million were applied to the associated debt with Frontier Bank, and the remaining net proceeds went to cash.

 

On July 14, 2015, the Company entered into definitive agreements to acquire from unrelated parties three hotels containing an aggregate of 378 rooms for contractual purchase prices aggregating to approximately $42.5 million, subject to closing fees and adjustments. Deposits totaling $212,500 were made on the purchase price on July 15, 2015.

 

In connection with the purchase of the three hotels, as partial consideration for the purchase price of the hotels, Supertel Limited Partnership will issue, to each of the sellers, limited partnership units, with an aggregate dollar value of between $150,000 and $250,000.

 

On July 15, 2015, we changed our name from Supertel Hospitality, Inc. to Condor Hospitality Trust, Inc. The Company will continue to trade on the NASDAQ under its new ticker, CDOR.

 

On July 23, 2015, RES, IRSA and the Company executed a written agreement on the rights and obligations agreed to in connection with a potential exchange offer by the Company of common stock for the Series A preferred stock and Series B preferred stock and conversion of Series C convertible preferred stock.  As described on the Company’s Form 8-K dated July 23, 2015, RES and the Company, among other things, have agreed that if the Company achieves an acceptance of a minimum of 80% of the shares of Series A preferred stock and the Series B preferred stock in an exchange offer then RES will convert a minimum of an equivalent percentage of Series C convertible preferred stock into common stock pursuant to the terms of the Series C convertible preferred stock, subject to RES retaining a minimum beneficial ownership of 1,000 shares of Series C convertible preferred stock.

 

On August 6, 2015, the Company sent a proxy statement to shareholders in connection with a special meeting of shareholders to be held on September 3, 2015.  At the special meeting, shareholders will consider approval of proposals to permit the exchange of common stock for Series A preferred stock and Series B preferred stock in an exchange offer.  The Company commenced the exchange offer on August 6, 2015 pursuant to which it could issue up to 11,664,615 shares of common stock in exchange for Series A preferred stock and Series B preferred stock, on terms and subject to conditions as set forth in the Company’s Offer to Exchange dated August 6, 2015 as filed with the SEC on that date.  The Company cannot provide assurance that the exchange offer will be successful.