MANDATORILY REDEEMABLE PREFERRED EQUITY
|9 Months Ended|
Sep. 30, 2020
|Notes to Financial Statements|
|MANDATORILY REDEEMABLE PREFERRED EQUITY||
NOTE F - MANDATORILY REDEEMABLE PREFERRED EQUITY
As described above, during the quarter ended September 30, 2020, the Company issued its lenders on its senior debt 126.5 million Class B Units of its subsidiary, BKRF HCB, LLC. The Company is obligated to make certain distribution payments to holders of these preferred units, and after the distributions reach a certain limit the units are considered fully redeemed. As such, for accounting purposes, these preferred units are considered to be mandatorily redeemable and have been classified as liabilities in the accompanying September 30, 2020, balance sheet.