United States Securities and Exchange Commission
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
Date of Report (Date of earliest event reported) September 6, 1996
UNION SQUARE HOTEL PARTNERS, L.P.
Exact Name of Registrant as Specified in its Charter
Commission File Number: 33-6678
Delaware 13-3389008
State or Other Jurisdiction of
Incorporation or Organization I.R.S. Employer Identification No.
3 World Financial Center, 29th Floor,
New York, NY Attn.: Andre Anderson 10285
Address of Principal Executive Offices Zip Code
(212) 526-3237
Registrant's Telephone Number, Including Area Code
Item 5. Other events.
A copy of the Union Square Hotel Partners, L.P. (the "Partnership") limited
partner report dated September 6, 1996 is attached hereto as Exhibit 99.1 and
incorporated herein by this reference. This report provides an update on
certain information relating to the current status of the Partnership and its
hotel, the Grand Hyatt San Francisco.
Item 7. Exhibits.
Exhibit Number Description
99.1 Report to Limited Partners of Union Square Hotel
Partners, L.P., dated September 6, 1996.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
UNION SQUARE HOTEL PARTNERS, L.P.
BY: UNION SQUARE/GP CORP.
General Partner
Date: September 6, 1996 BY: /s/ Jeffrey C. Carter
President, Director
and Chief Financial Officer
EXHIBIT INDEX TO FORM 8-K
Exhibit Number Description
99.1 Report to Limited Partners of Union Square Hotel
Partners, L.P., dated September 6, 1996.
Union Square Hotel Partners, L.P.
c/o Service Data Corporation
2424 South 130th Circle
Omaha, NE 68144-2596
(800) 223-3464
September 6, 1996
Dear Limited Partner:
We would like to take this opportunity to update you on certain
information relating to the current status of Union Square Hotel Partners,
L.P. (the "Partnership") and its hotel, the Grand Hyatt San Francisco (the
"Hotel").
As discussed in prior reports, the Partnership has been exploring viable
options with respect to the January 1997 maturity of the Partnership's
secured mortgage debt. To this end, we have retained Eastdil Realty Company,
a nationally-recognized real estate firm, to facilitate a sale of the Hotel
or obtain replacement financing for the Partnership's debt.
In connection with the marketing of the Hotel, we are pleased to inform you
that the Partnership has recently agreed that until September 30, 1996, it
will limit itself to exclusive negotiations with one prospective purchaser.
No assurance whatsoever can be given that such negotiations will ultimately
result in a sale of the Hotel to this purchaser or any other party. Although
the Partnership currently anticipates that, based on such exclusive
negotiations, proceeds from any sale of the Hotel would be in excess of the
amount necessary to repay the first mortgage currently encumbering the Hotel,
such proceeds would clearly be insufficient to repay in full all of the
remaining secured and unsecured debt of the Partnership. Therefore, before
agreeing to a sale, the Partnership intends to seek to negotiate with the
Partnership's other creditors (including the creditor whose debt is secured
by a second mortgage on the Hotel) in an effort to agree upon an appropriate
allocation among such creditors and the Partnership of any proceeds from the
sale of the Hotel remaining after repayment of the first mortgage debt.
As previously disclosed, the Partnership expects to continue to explore
viable alternatives in the event that a sale of the Hotel cannot be
consummated on acceptable terms. Given the increasing level of indebtedness
resulting from deferred and accruing interest on the Partnership's existing
debt and the January 1997 debt maturity, we underscore the great degree of
uncertainty surrounding the future of the Partnership and your investment.
Should the Partnership ultimately be faced with a foreclosure of the Hotel,
the General Partner will make a determination as to whether a filing under
Chapter 11 of the United States Bankruptcy Code would be beneficial. Please
be assured that we will carefully consider appropriate options. We will
endeavor to keep you apprised of significant developments in future investor
reports.
Very truly yours,
Union Square/GP Corp.
The General Partner
/s/ Jeffrey C. Carter
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Jeffrey C. Carter President
cc: Financial Consultant
