Total assets were $1.469 billion at 3/31/14. Liabilities at $1.227 billion, while equity stood at $242 million.
4. PREFERRED STOCK OF SUBSIDIARY:
In May 2008, Grace Acquisition I ceased dividend payments to its preferred shareholders due to the “cash trap” under the GE Mortgage. As of March 31, 2014, Grace Acquisition I had $76,618,000 in accumulated, undeclared preferred stock dividends. Since at least six quarters of dividends on the Series B and C cumulative preferred stock are outstanding, the preferred shareholders are entitled to elect two members to the board of directors of Grace Acquisition I. Grace Acquisition I has attempted to hold three meetings to elect the new board members; however, at each meeting a quorum was not achieved and, therefore, an election did not occur.
Don't forget who gets 58.8 percent (or maybe more now) of those preferred dividends!
The seller financing this refers to is Goldman providing a short-term loan to ARC Hospitality. It is my understanding that subsequent to closing ARC Hospitality will seek to raise preferred equity from its current investors to clear this financing.
I am also to understand that ARC Hospitality is actually targeting a closing prior to Dec 2014, but that they have given themselves some breathing room in this filing.