Quarterly report pursuant to Section 13 or 15(d)

MANDATORILY REDEEMABLE PREFERRED EQUITY

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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.