May 22, 2013
In its most recent quarterly Report with the Securities and Exchange Commission, TNP Strategic Retail Trust disclosed ongoing cash problems that are expected, according to the Company, to result in reduced investment activities for the foreseeable future, unless it is able to orchestrate another offering of securities or to identify some other significant sources of financing.
In its 10-Q form filed on May 20, 2013 (the “Report”), TNP Strategic Retail Trust stated:
“The Company’s cash and cash equivalents is likely to fall further and may remain significantly limited until the Company finds other sources of cash, such as from borrowings, sales of equity capital or sales of assets. Although no assurances may be given, the Company believes that its current cash from operations will be sufficient to support the Company’s ongoing operations, including its debt service payments, other than the required payment on the Company’s credit agreement with KeyBank following the expiration of the Company’s forbearance agreement with Key Bank ….” (emphasis supplied).
TNP’s 10-Q form indicates that the KeyBank loan referenced above, which must be repaid on July 31, 2013, had a balance of $36.5 million as of March 31, 2013. TNP SRT’s cash balance on March 31 was $1.1 million and it held assets for sale of $1.2 million, according to the balance sheet it filed with the SEC. On March 31, 2013 TNP SRT’s assets totaled $273 million and its liabilities $204 million. For the three months ended on March 31, 2013, TNP SRT posted a loss from continuing operations of $3.5 million.
Readers of this blog should read the entire 10-Q Report before making any judgment as to TNP SRT’s financial and business position. This blog posting is for informational purposes only and should not be relied upon in any way for investment-related decisions. The 10-Q Report is available here: http://www.sec.gov/Archives/edgar/data/1446371/000114420413030591/v343768_10q.htm .
Securities attorneys Jason Kane and Joe Peiffer have been investigating several TNP-sponsored investments, including TNP Strategic Retail Trust, TNP 12% Notes, TNP “Kodak,” and TNP 2008 Participating Notes (“TNP”). Attorneys Rosca and Peiffer are preparing to take action on behalf of a number of TNP program investors against securities broker-dealer firms that may have failed in their duties to adequately vet the TNP products prior to recommending them to their customers. TNP investors are encouraged to contact attorneys Jason Kane or Joe Peiffer for a free case evaluation at (216) 589-9280.