WASHINGTON — InnSuites Hospitality Trust (IHT) sent a letter to Pacific Century Bank on Dec. 12 saying it wasnt in compliance with financial covenants under its $12 million credit line. In its fiscal second-quarter report filed late Friday with the SEC, InnSuites said it has also applied for, but not received, a waiver from the lender. The company had drawn $11.3 million from the credit line, which is secured by three hotel properties.
The company has 30 days to cure its noncompliance, which may be extended an additional 90 days. If the company isnt able to gain compliance within this period, the $11.3 million may become immediately due. The Phoenix-based real estate investment trust had a zero cash balance as of Oct. 31, the end of its fiscal 2001 second quarter, the filing said. (12/18/00)