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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) June 29, 1995
Resort Income Investors, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 1-10084 36-3593298
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(State of or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
One Norwest Center, 1700 Lincoln, 49th Floor, Denver, Colorado 80203
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (303) 863-2400
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS.
Capitalized terms not otherwise defined herein shall have the same meaning
as in the prospectus of Resort Income Investors, Inc. (the "Company") dated
October 24, 1988 (the "Prospectus").
On June 29, 1995, the Company announced that it decided to commence an
orderly self-liquidation of its assets. The Company's Independent Directors
will oversee negotiations with the Company's Affiliated Borrowers and assume
responsibility for collecting the outstanding loans over an anticipated 24 to
36-month period. The Company expects its $2.0 million loan to Hemmeter
Enterprises, Inc. to be repaid within the next 90 to 180 days, however, there
are no assurances as to such repayment.
The Company currently has cash of $3.4 million. Pending the determination
of its working capital and reserve needs, the Company anticipates distributing
less than 50% of these funds within approximately the next 60 days. Instead of
quarterly distributions, periodic liquidating distributions will be made to the
Stockholders as loans are repaid, subject to allowances for necessary reserves
and working capital to allow the Company to protect its remaining collateral
positions and assets. On a related note, the Company will cease accruing
interest and convert the maturing loans to demand loans.
The Company also announced that the Independent Directors conducted a
rigorous evaluation of each of the Company's loans and determined to reduce the
value of its loan portfolio by recognizing an accounting charge of
approximately $12.5 million (79% represents the uncollateralized portion of the
Company's loan to Mr. Christopher B. Hemmeter and the remaining 21% represents
accrued interest). Such charge, however, does not impact the Company's legal
standing to collect the full principal amount of its loans.
As a result of this charge, the net book value approximated $27.5 million
on June 29, 1995. This asset value is determined by assuming loan amounts
(other than the $12.5 million charge) will be collected in full at their
current appraised value in an orderly fashion over the next 24 to 36 months.
There can be no assurance that this net asset value will be realized, the
assumption underlying the net asset value will be attained or that there will
not be further write-downs.
The Company currently has 4,156,000 shares outstanding.
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SIGNATURES
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.
RESORT INCOME INVESTORS, INC.
(Registrant)
DATE: July 3, 1995 By: /s/ Mark Hemmeter
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Name: Mark Hemmeter
Title: Director, Executive Vice President,
Secretary, Treasurer, Chief Financial
Officer and Chief Accounting Officer
