-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, OQvV9SS2tB1yf8ZHUrdLHukOOh8zvpu7DymMRJTpS+jpYSz7MmKJVvHzQiV9fTuB bXaK7D0CuG4XRholngxrlg== 0000355804-95-000004.txt : 19951119 0000355804-95-000004.hdr.sgml : 19951119 ACCESSION NUMBER: 0000355804-95-000004 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950930 FILED AS OF DATE: 19951114 SROS: AMEX FILER: COMPANY DATA: COMPANY CONFORMED NAME: ANGELES INCOME PROPERTIES LTD II CENTRAL INDEX KEY: 0000711642 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 953793526 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-11767 FILM NUMBER: 95591789 BUSINESS ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLZ STREET 2: PO BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 8032391000 MAIL ADDRESS: STREET 1: ONE INSIGNIA FINANCIAL PLAZA STREET 2: P.O. BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 10QSB 1 FORM 10-QSB.--QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Quarterly or Transitional Report (As last amended by 34-32231, eff. 6/3/93.) U.S. Securities and Exchange Commission Washington, D.C. 20549 Form 10-QSB [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1995 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT For the transition period.........to......... Commission file number 0-11767 ANGELES INCOME PROPERTIES, LTD. II (Exact name of small business issuer as specified in its charter) California 95-3793526 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) One Insignia Financial Plaza, P.O. Box 1089 Greenville, South Carolina 29602 (Address of principal executive offices) (Zip Code) Issuer's telephone number (803) 239-1000 Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS a) ANGELES INCOME PROPERTIES, LTD. II BALANCE SHEET (Unaudited)
September 30, 1995 Assets Cash: Unrestricted $ 1,602,018 Restricted--tenant security deposits 245,227 Accounts receivable (net of allowance for 97,096 doubtful accounts of $17,056) Escrows for taxes 166,571 Restricted escrows 399,343 Other assets 538,076 Investment in joint venture 64,603 Investment properties: Land $ 2,197,403 Buildings and related personal property 32,215,238 34,412,641 Less accumulated depreciation (20,848,093) 13,564,548 $16,677,482 Liabilities and Partners' Deficit Liabilities Accounts payable $ 156,888 Tenant security deposits 252,965 Accrued taxes 175,164 Other liabilities 284,393 Mortgage notes payable 16,788,689 Partners' Deficit General partner $ (448,116) Limited partners (99,852 units issued and outstanding) (532,501) (980,617) $16,677,482
[FN] See Accompanying Notes to Financial Statements b) ANGELES INCOME PROPERTIES, LTD. II STATEMENTS OF OPERATIONS (Unaudited)
Three Months Ended Nine Months Ended September 30, September 30, 1995 1994 1995 1994 Revenues: Rental income $1,602,750 $1,903,861 $5,057,197 $ 5,593,727 Other income 75,410 98,856 218,104 291,246 Total revenue 1,678,160 2,002,717 5,275,301 5,884,973 Expenses: Operating 395,829 550,259 1,291,876 1,633,384 Administrative 75,919 77,998 249,611 405,050 Property management fees 79,007 81,587 246,852 258,337 Maintenance 266,171 309,883 622,122 851,879 Depreciation 431,218 593,444 1,426,518 1,763,572 Amortization 4,784 11,312 21,694 47,063 Interest 400,071 601,634 1,379,824 1,813,946 Property taxes 191,922 161,781 471,285 457,145 Tenant reimbursements (47,151) (40,371) (68,114) (59,613) Total expenses 1,797,770 2,347,527 5,641,668 7,170,763 Equity in income (loss) of joint venture 13,882 8,546 (2,623) 11,139 Gain on transfer of property in foreclosure -- -- 1,385,286 -- Loss on disposal of property -- -- (40,328) (9,168) (Loss) income before extraordinary item (105,728) (336,264) 975,968 (1,283,819) Extraordinary gain on extinguishment of debt -- -- 564,771 -- Net (loss) income $ (105,728) $ (336,264) $1,540,739 $(1,283,819) Net (loss) income allocated to general partners (1%) $ (1,057) $ (3,363) $ 15,407 $ (12,838) Net (loss) income allocated to limited partners (99%) (104,671) (332,901) 1,525,332 (1,270,981) Net (loss) income $ (105,728) $ (336,264) $1,540,739 $(1,283,819) Per limited partnership unit: (Loss) income before extraordinary item $ (1.05) $ (3.33) $ 9.68 $ (12.71) Extraordinary gain on extinguishment of debt -- -- 5.60 -- Net (loss) income $ (1.05) $ (3.33) $ 15.28 $ (12.71)
[FN] See Accompanying Notes to Financial Statements c) ANGELES INCOME PROPERTIES, LTD, II STATEMENT OF CHANGES IN PARTNERS' DEFICIT (Unaudited)
Limited Partnership General Limited Units Partners Partners Total Original capital contributions 100,000 $ 1,000 $ 50,000,000 $50,001,000 Partners' deficit at December 31, 1994 99,852 $(463,523) $ (2,057,833) $(2,521,356) Net income for the nine months ended September 30, 1995 -- 15,407 1,525,332 1,540,739 Partners' deficit at September 30, 1995 99,852 $(448,116) $ (532,501) $ (980,617)
[FN] See Accompanying Notes to Consolidated Financial Statements d) ANGELES INCOME PROPERTIES, LTD. II STATEMENT OF CASH FLOWS (Unaudited)
Nine Months Ended September 30, 1995 1994 Cash flows from operating activities: Net income (loss) $ 1,540,739 $(1,283,819) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation 1,426,518 1,763,572 Amortization of discounts, loan costs and lease commissions 102,459 130,108 Equity in loss (income) of joint venture 2,623 (11,139) Gain on transfer of property in foreclosure (1,385,286) -- Loss on disposal of property 40,328 9,168 Extraordinary gain on extinguishment of debt (564,771) -- Change in accounts: Restricted cash 11,086 (10,711) Accounts receivable (79,875) 24,221 Escrows for taxes (30,647) (48,508) Other assets (39,856) (195,554) Accounts payable (66,043) 86,191 Tenant security deposit liabilities 9,224 14,222 Accrued taxes 91,679 137,816 Other liabilities 136,982 (20,793) Net cash provided by operating activities 1,195,160 594,774 Cash flows from investing activities: Property improvements and replacements (446,444) (393,883) Insurance proceeds 18,550 -- Deposits to restricted escrows (64,196) (50,231) Receipts from restricted escrows 30,245 199,610 Net cash used in investing activities (461,845) (244,504) Cash flows from financing activities: Loan costs -- (36,776) Payments on mortgage notes payable (194,746) (232,335) Net cash used in financing activities (194,746) (269,111) Net increase in cash balances 538,569 81,159 Cash at beginning of period 1,063,449 845,033 Cash at end of period $ 1,602,018 $ 926,192 Supplemental disclosure of cash flow information: Cash paid for interest $ 1,125,371 $1,702,171
[FN] See Accompanying Notes to Financial Statements ANGELES INCOME PROPERTIES, LTD. II SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES (Unaudited) Foreclosure On March 20, 1995, the Partnership negotiated a Deed in Lieu of Foreclosure for Executive Plaza Office Park, located in Huntsville, Alabama. The property was lost to the wrap note holder. The Managing General Partner believes that the Deed in Lieu of Foreclosure was in the best interest of the Partnership. In connection with the foreclosure of Executive Plaza Office Park on March 20, 1995, the following accounts were adjusted by the following non-cash amounts: Accounts receivable $ (101,035) Investment properties (4,481,841) Other assets (88,775) Taxes 144,629 Tenant security deposits 39,919 Mortgage 5,987,086 Other liabilities 509,904 e) ANGELES INCOME PROPERTIES, LTD. II NOTES TO FINANCIAL STATEMENTS (Unaudited) Note A - Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of the Managing General Partner, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine month period ended September 30, 1995, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 1995. For further information, refer to the financial statements and footnotes thereto included in the Partnership's annual report on Form 10-KSB for the fiscal year ended December 31, 1994. Certain reclassifications have been made to the 1994 information to conform to the 1995 presentation. Note B - Transactions with Affiliated Parties The Partnership has no employees and is dependent on the Managing General Partner and its affiliates for the management and administration of all partnership activities. The Partnership Agreement provides for payments to affiliates for services and as reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. The following amounts were paid or accrued to the Managing General Partner and affiliates for the nine months ended September 30, 1995 and 1994: 1995 1994 Property management fees $246,852 $258,337 Marketing services 4,719 979 Reimbursement for services of affiliates 189,102 330,046 The Partnership insures its properties under a master policy through an agency and insurer unaffiliated with the Managing General Partner. An affiliate of the Managing General Partner acquired, in the acquisition of a business, certain financial obligations from an insurance agency which was later acquired by the agent who placed the current year's master policy. The current agent assumed the financial obligations to the affiliate of the Managing General Partner, who receives payments on these obligations from the agent. The amount of the Partnership's insurance premiums accruing to the benefit of the affiliate of the Managing General Partner by virtue of the agent's obligations is not significant. Note B - Transactions with Affiliated Parties - (continued) Angeles Mortgage Investment Trust, ("AMIT"), a real estate investment trust, has provided financing in the amount of $1,320,419 to the Joint Venture secured by its investment property (see Part II, Item 1. Legal Proceedings). This debt was in default at September 30, 1995, and remains in default at present. MAE GP Corporation ("MAE GP"), an affiliate of the General Partner, owns 1,675,113 Class B Shares of AMIT. MAE GP has the option to convert these Class B Shares, in whole or in part, into Class A Shares on the basis of 1 Class A Share for every 49 Class B Shares. These Class B Shares entitle MAE GP to receive 1% of the distributions of net cash distributed by AMIT. The Class B Shares also entitle MAE GP to vote on the same basis as Class A Shares which allows MAE GP to vote approximately 37% of the total shares (unless and until converted to Class A Shares at which time the percentage of the vote controlled represented by the Shares held by MAE GP would approximate 1% of the vote). Between the date of acquisition of these shares (November 24, 1992) and March 31, 1995, MAE GP declined to vote these shares. Since that date, MAE GP voted its shares at the 1995 annual meeting in connection with the election of trustees and other matters. MAE GP has not exerted, and continues to decline to exert, any management control over or participate in the management of AMIT. As part of a settlement of certain disputes with AMIT, MAE GP granted to AMIT an option to acquire the Class B Shares. This option can be exercised at the end of 10 years or when all loans made by AMIT to partnerships affiliated with MAE GP as of November 9, 1994, (which is the date of execution of a definitive Settlement Agreement) have been paid in full, but in no event prior to November 9, 1997. AMIT delivered to MAE GP cash in the sum of $250,000 at closing, which occurred April 14, 1995, as payment for the option. Upon exercise of the option, AMIT would remit to MAE GP an additional $94,000. Simultaneously with the execution of the option, MAE GP executed an irrevocable proxy in favor of AMIT, the result of which is MAE GP will be able to vote the Class B Shares on all matters except those involving transactions between AMIT and MAE GP affiliated borrowers or the election of any MAE GP affiliate as an officer or trustee of AMIT. On those matters, MAE GP granted to the AMIT trustees, in their capacity as trustees of AMIT, proxies with regard to the Class B Shares instructing such trustees to vote said Class B Shares in accordance with the vote of the majority of the Class A Shares voting to be determined without consideration of the votes of "Excess Class A Shares" as defined in Section 6.13 of the Declaration of Trust of AMIT. Note C - Investment in Joint Venture The Partnership owns a 14.4% interest in Princeton Meadows Golf Course Joint Venture ("Joint Venture"). The Partnership accounts for the Joint Venture on the equity method. Condensed balance sheet information of the Joint Venture at September 30, 1995, is as follows: Assets Cash $ 276,240 Deferred charges and other assets 123,988 Investment properties, net 1,898,912 Total $2,299,140 Liabilities and Partners' Capital Notes payable to AMIT, in default $1,320,419 Other liabilities 533,382 Partners' capital 445,339 Total $2,299,140 The condensed statements of operations of the Joint Venture are summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 1995 1994 1995 1994 Revenue $ 501,362 $ 429,594 $ 985,090 $ 975,529 Costs and expenses (404,963) (370,247) (1,003,307) (898,174) Net income (loss) $ 96,399 $ 59,347 $ (18,217) $ 77,355 The Princeton Meadows Golf Course property had an underground fuel storage tank that was removed in 1992. This fuel storage tank caused contamination to the area. Reports were filed with the proper authorities. Subsequent to September 30, 1995, the State of New Jersey Department of Environmental Protection issued a corrective actions letter to the Joint Venture. Based on discussions with environmental engineers and others, the Managing General Partner expects the remediation costs to be immaterial to the Partnership. Note D - Gain on Foreclosure of Investment Property On March 20, 1995, the Partnership negotiated a Deed in Lieu of Foreclosure for Executive Plaza Office Park located in Huntsville, Alabama and, as a result, the property was transferred to the wrap note holder. The Managing General Partner believes the Deed In Lieu of Foreclosure was in the best interest of the Partnership. The Partnership realized a gain of $1,950,057 on this transaction which included a gain on transfer of property in foreclosure of $1,385,286 and an extraordinary gain on extinguishment of debt of $564,771 . ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS Results of Operations The Partnership's investment properties consist of three apartment complexes and one commercial property. The following table sets forth the average occupancy of the properties for the nine months ended September 30, 1995, and September 30, 1994: Average Occupancy Property 1995 1994 Atlanta Crossing Shopping Center Montgomery, Alabama 91% 86% Deer Creek Apartments Plainsboro, New Jersey 95% 92% Georgetown Apartments South Bend, Indiana 98% 98% Landmark Apartments Raleigh, North Carolina 96% 95% The Partnership's net income for the nine months ended September 30, 1995, was $1,540,739 versus a net loss of $1,283,819 for the nine months ended September 30, 1994. The Partnership generated a net loss for the three months ended September 30, 1995, of $105,728 as compared to a net loss of $336,264 for the same period in 1994. The increase in net income for the nine month period ended September 30, 1995, is due primarily to the gain on foreclosure of Executive Plaza Office Park, on March 20, 1995, (see discussion below). Total revenues decreased for the three and nine month periods ended September 30, 1995, as compared to the three and nine month periods ended September 30, 1994, due to rental revenue lost from the foreclosure of Executive Plaza. This decrease in revenue was partially offset by increased occupancy and rental revenues at Landmark, Deer Creek and Atlanta Crossing. Overall expenses decreased for the three and nine month periods ended September 30, 1995, due primarily to the foreclosure of Executive Plaza. Operating expenses decreased at Deer Creek and Atlanta Crossing, due to decreased salary expenses. Also, higher occupancy at Deer Creek resulted in the rental of corporate units and lower utility expenses related to those units. Administrative expenses decreased due to decreased reimbursements for partnership administration costs, lower office supplies expense and professional fees expense. Maintenance expense decreased due to decreases in snow removal, maintenance supplies, and interior painting expenses. The Partnership has a 14.4% investment in the Princeton Meadows Golf Course Joint Venture. For the three and nine months ended September 30, 1995, the Partnership realized equity in income and equity in loss of the Joint Venture of $13,882 and $2,623 respectively, as compared to an equity in income of the Joint Venture of $8,546 and $11,139 for the three and nine months ended September 30, 1994, respectively. (See Note C - Investment in Joint Venture). The loss for the nine months ended September 30, 1995, can be attributed to bad debt expense recorded during the year due to the establishment of a reserve for uncollectible receivables. In addition, the Joint Venture has experienced a decrease in association dues from 1994 to 1995. For the nine month period ended September 30, 1995, the Partnership recognized a loss on disposal of property of $40,328. This loss resulted from the write off of the net book value of roofs replaced at Georgetown Apartments in the amount of $47,715 and a gain of $7,388 on Deer Creek for a unit destroyed by fire damage which was covered by insurance. During the nine months ended September 30, 1994, the Partnership realized a loss on disposal of assets of $9,168 due to the write off of the net book value of roofs for a section of Atlanta Crossing that was re-roofed. On March 20, 1995, the Partnership negotiated a Deed in Lieu of Foreclosure for Executive Plaza Office Park located in Huntsville, Alabama and, as a result, the property was transferred to the wrap note holder. The Managing General Partner believes the Deed In Lieu of Foreclosure was in the best interest of the Partnership. The Partnership realized a gain of $1,950,057 on this transaction for the nine months ended September 30, 1995, which included a gain on transfer of property in foreclosure of $1,385,286 and an extraordinary gain on extinguishment of debt of $564,771. As part of the ongoing business plan of the Partnership, the Managing General Partner monitors the rental market environment of each of its investment properties to assess the feasibility of increasing rents, maintaining or increasing occupancy levels and protecting the Partnership from increases in expense. As part of this plan, the Managing General Partner attempts to protect the Partnership from the burden of inflation-related increases in expenses by increasing rents and maintaining a high overall occupancy level. However, due to changing market conditions, which can result in the use of rental concessions and rental reductions to offset softening market conditions, there is no guarantee that the Managing General Partner will be able to sustain such a plan. At September 30, 1995, the Partnership had unrestricted cash of $1,602,018 compared to $926,192 at September 30, 1994. Net cash provided by operating activities increased primarily as a result of the increase in net income for the period ended September 30, 1995, as compared to September 30, 1994, and the increase in other liabilities and the decrease in other assets. Net cash used in investing activities increased as a result of increased deposits to restricted escrows, decreased receipts from restricted escrows and increased fixed asset additions. Net cash used in financing activities decreased due to decreased principal payments on long-term debt primarily related to the foreclosure of Executive Plaza. The sufficiency of existing liquid assets to meet future liquidity and capital expenditure requirements is directly related to the level of capital expenditures required at the property to adequately maintain the physical assets and other operating needs of the Partnership. Such assets are currently thought to be sufficient for any near-term needs of the Partnership. Future cash distributions will depend on the levels of net cash generated from operations, refinancings, property sales and the availability of cash reserves. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS AMIT, a real estate investment trust, made a loan to the Joint Venture on a non-recourse basis in September 1991, in the amount of $1,280,000 secured by the Joint Venture's real property known as Princeton Meadows Golf Course. Due to default interest and late fees that are delinquent and have been added to the principal balance, the current balance of this indebtedness is $1,320,419. AMIT asserts that the loan is recourse by virtue of a certain amendment purportedly entered into as of November 1, 1992, but which the Partnership and the Joint Venture have been informed and believe were actually executed in December of 1992. The Partnership and the Joint Venture have been further informed and believe that the amendment was executed at the direction of Angeles Corporation ("Angeles") by an individual in his purported capacity as an officer of the Managing General Partner of the Partnership and the Joint Venture at a time when such person was not in fact an officer of such entities. Accordingly, the Partnership and the Joint Venture filed Proofs of Claim in the Angeles bankruptcy proceeding with respect to such purported amendment. Additionally, the Partnership and the Joint Venture filed a Proof of Claim in the Angeles Funding Corporation and Angeles Real Estate Corporation bankruptcy proceedings on similar grounds. Both Angeles Funding Corporation and Angeles Real Estate Corporation are affiliates of Angeles. Angeles has agreed to cooperate with the Partnership and the Joint Venture in any action commenced by or against them by AMIT asserting that the $1,280,000 obligations owed to AMIT are recourse to the Partnership. Angeles further agreed to waive the attorney-client privilege with respect to any information relating to the Note Modifications. Accordingly, the Partnership and the Joint Venture withdrew their Proofs of Claim on August 9, 1995. MAE GP Corporation ("MAE GP"), an affiliate of the General Partner, owns 1,675,113 Class B Shares of AMIT. MAE GP has the option to convert these Class B Shares, in whole or in part, into Class A Shares on the basis of 1 Class A Share for every 49 Class B Shares. These Class B Shares entitle MAE GP to receive 1% of the distributions of net cash distributed by AMIT. The Class B Shares also entitle MAE GP to vote on the same basis as Class A Shares which allows MAE GP to vote approximately 37% of the total shares (unless and until converted to Class A Shares at which time the percentage of the vote controlled represented by the shares held by MAE GP would approximate 1% of the vote). Between the date of acquisition of these shares (November 24, 1992) and March 31, 1995, MAE GP declined to vote these shares. Since that date, MAE GP voted its shares at the 1995 annual meeting in connection with the election of trustees and other matters. MAE GP has not exerted, and continues to decline to exert, any management control over or participate in the management of AMIT. As part of a settlement of certain disputes with AMIT, MAE GP granted to AMIT an option to acquire the Class B Shares. This option can be exercised at the end of 10 years or when all loans made by AMIT to partnerships affiliated with MAE GP as of November 9, 1994, (which is the date of execution of a definitive Settlement Agreement) have been paid in full, but in no event prior to November 9, 1997. AMIT delivered to MAE GP cash in the sum of $250,000 at closing, which occurred April 14, 1995, as payment for the option. Upon exercise of the option, AMIT would remit to MAE GP an additional $94,000. Simultaneously with the execution of the option, MAE GP executed an irrevocable proxy in favor of AMIT the result of which is MAE GP will be able to vote the Class B Shares on all matters except those involving transactions between AMIT and MAE GP affiliated borrowers or the election of any MAE GP affiliate as an officer or trustee of AMIT. On those matters, MAE GP granted to the AMIT trustees, in their capacity as trustees of AMIT, proxies with regard to the Class B Shares instructing such trustees to vote said Class B Shares in accordance with the vote of the majority of the Class A Shares voting to be determined without consideration of the votes of "Excess Class A Shares" as defined in Section 6.13 of the Declaration of Trust of AMIT. Also, Angeles, either directly or through an affiliate, maintained a central disbursement account (the "Account") for the properties and partnerships managed by Angeles and its affiliates, including the Registrant. Angeles caused the Partnership to make deposits to the Account ostensibly to fund the payment of certain obligations of the Partnership. Angeles further caused checks on such Account to be written to or on behalf of certain other partnerships. At least $63,412 deposited by or on behalf of the Partnership was used for purposes other than satisfying the liabilities of the Partnership. Accordingly, the Partnership filed a Proof of Claim in the Angeles bankruptcy proceedings for such amount. However, subsequently the Managing General Partner of the Partnership has determined that the cost involved to pursue such claim would likely exceed any amount received, if in fact such claim were to be resolved in favor of the Partnership. Therefore, the Partnership withdrew this claim on August 9, 1995. Except as mentioned above, the Partnership is not involved in any legal proceedings other than those arising in the normal course of business. The Managing General Partner believes that any losses experienced as a result of such proceedings will not have a material adverse effect upon the Partnership's operations. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibits: Exhibit 27, Financial Data Schedule, is filed as an exhibit to this report. b) Reports on Form 8-K: None filed during the quarter ended September 30, 1995. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ANGELES INCOME PROPERTIES, LTD. II By: Angeles Realty Corporation II Managing General Partner By: /s/Carroll D. Vinson Carroll D. Vinson President By: /s/Robert D. Long, Jr. Robert D. Long, Jr. Controller and Principal Accounting Officer Date: November 14, 1995 EX-27 2
5 This schedule contains summary financial information extracted from Angeles Income Properties, Ltd. II 1995 Third Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB. 0000711642 ANGELES INCOME PROPERTIES LTD II 1 9-MOS DEC-31-1995 SEP-30-1995 1,602,018 0 114,153 (17,056) 0 0 34,412,641 (20,848,093) 16,677,482 0 16,788,689 0 0 0 980,617 16,677,482 0 5,275,301 0 0 5,641,668 0 1,379,824 1,540,739 0 1,540,739 0 0 0 1,540,739 0 0 The Registrant has an unclassified balance sheet.
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