-----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, RzG2vCMaOs+4JmJ1pkMjjNVNVeA7s1hmNNMhm402Y6ibXj7JXxJHaNgIXo7i4ebk AFbIapf7GK+2Uh2Fe06QZg== /in/edgar/work/0000711642-00-000311/0000711642-00-000311.txt : 20001114 0000711642-00-000311.hdr.sgml : 20001114 ACCESSION NUMBER: 0000711642-00-000311 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001113 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MCCOMBS REALTY PARTNERS LTD CENTRAL INDEX KEY: 0000759198 STANDARD INDUSTRIAL CLASSIFICATION: [6500 ] IRS NUMBER: 330068732 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: SEC FILE NUMBER: 000-14570 FILM NUMBER: 760242 BUSINESS ADDRESS: STREET 1: 1873 SOUTH BELLAIRE STREET 17TH FLOOR CITY: DENVER STATE: CO ZIP: 80222 BUSINESS PHONE: 3037578101 MAIL ADDRESS: STREET 1: 1873 SOUTH BELLAIRE STREET 17TH FLOOR CITY: DENVER STATE: CO ZIP: 80222 10QSB 1 0001.txt QUARTER ENDING SEPTEMBER 30, 2000 FORM 10-QSB--QUARTERLY OR TRANSITIONAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Quarterly or Transitional Report U.S. SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-QSB (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2000 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _________to _________ Commission file number 0-14570 MCCOMBS REALTY PARTNERS (Exact name of small business issuer as specified in its charter) California 33-0068732 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 55 Beattie Place, PO Box 1089 Greenville, South Carolina 29602 (Address of principal executive offices) (864) 239-1000 (Issuer's telephone number) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 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) MCCOMBS REALTY PARTNERS CONSOLIDATED BALANCE SHEET (Unaudited) (in thousands, except unit data) September 30, 2000
Assets Cash and cash equivalents $ 669 Receivables and deposits 28 Restricted escrows 87 Other assets 117 Investment property: Land $ 499 Buildings and related personal property 5,786 6,285 Less accumulated depreciation (3,933) 2,352 $ 3,253 Liabilities and Partners' Deficit Liabilities Accounts payable $ 43 Tenant security deposit liabilities 18 Accrued property taxes 64 Other liabilities 86 Mortgage note payable 5,555 Partners' Deficit General partner $ -- Limited partners (17,196.39 units issued and outstanding) (2,513) (2,513) $ 3,253 See Accompanying Notes to Consolidated Financial Statements
b) MCCOMBS REALTY PARTNERS CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data)
Three Months Ended Nine Months Ended September 30, September 30, 2000 1999 2000 1999 Revenues: (Restated) (Restated) Rental income $ 374 $ 368 $ 1,110 $ 1,037 Other income 32 21 84 82 Total revenues 406 389 1,194 1,119 Expenses: Operating 156 147 494 430 General and administrative 55 23 184 69 Depreciation 65 59 210 182 Interest 118 119 352 358 Property taxes 21 21 64 65 Total expenses 415 369 1,304 1,104 (Loss) income before cumulative effect of a change in accounting principle (9) 20 (110) 15 Cumulative effect on prior years of a change in accounting principle for the cost of exterior painting and landscaping -- -- -- 25 Net (loss) income $ (9) $ 20 $ (110) $ 40 Net (loss) income allocated to general partner (1%) $ -- $ -- $ (1) $ -- Net (loss) income allocated to limited partners (99%) (9) 20 (109) 40 $ (9) $ 20 $ (110) $ 40 Per limited partnership unit: (Loss) income before cumulative effect of a change in accounting principle $ (0.52) $ 1.16 $(6.34) $ 0.88 Cumulative effect on prior years of a change in accounting principle for the cost of exterior painting and landscaping -- -- -- 1.45 $ (0.52) $ 1.16 $ (6.34) $ 2.33 See Accompanying Notes to Consolidated Financial Statements
c) MCCOMBS REALTY PARTNERS CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL (DEFICIT) (Unaudited) (in thousands, except unit data)
Limited Partnership General Limited Units Partner Partners Total Partners' capital (deficit) at December 31, 1999 17,196.39 $ 1 $(2,404) $(2,403) Net loss for the nine months ended September 30, 2000 -- (1) (109) (110) Partners' deficit at September 30, 2000 17,196.39 $ -- $(2,513) $(2,513) See Accompanying Notes to Consolidated Financial Statements
d) MCCOMBS REALTY PARTNERS CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
Nine Months Ended September 30, 2000 1999 Cash flows from operating activities: (Restated) Net (loss) income $ (110) $ 40 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation 210 182 Amortization of loan costs 13 14 Cumulative effect on prior years of a change in accounting principle -- (25) Change in accounts: Receivables and deposits 86 15 Other assets (10) (17) Accounts payable (16) -- Tenant security deposit liabilities (1) 2 Accrued property taxes (18) (17) Other liabilities 13 (7) Net cash provided by operating activities 167 187 Cash flows from investing activities: Property improvements and replacements (174) (52) Net withdrawals from restricted escrows 134 65 Net cash (used in) provided by investing activities (40) 13 Cash flows used in financing activities: Payments on mortgage note payable (51) (47) Net increase in cash and cash equivalents 76 153 Cash and cash equivalents at beginning of period 593 350 Cash and cash equivalents at end of period $ 669 $ 503 Supplemental disclosure of cash flow information: Cash paid for interest $ 339 $ 343 At December 31, 1999, $88,000 of property improvements and replacements included in accounts payable were reported as non-cash activity. See Accompanying Notes to Consolidated Financial Statements
e) MCCOMBS REALTY PARTNERS NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note A - Going Concern Under the Plan of Reorganization (the "Plan"; see "Note C" below) McCombs Realty Partners (the "Partnership" or "Registrant"), a California limited partnership, was required to pay claims to limited partners and creditors of approximately $11,000,000 on October 20, 1998. These claims have not been paid as of September 30, 2000. This raises substantial doubt about the Partnership's ability to continue as a going concern. In order to attempt to satisfy the remaining claims under the Plan, the Partnership would be required to sell the investment property. As an alternative to the sale of the property, the Partnership could attempt to obtain authorization from the Court and the limited partners to extend the settlement date of October 20, 1998, to a future period. The limited partners were approached in August 1998 and asked to either approve a sale of the Partnership's sole investment property or for CRPTEX, Inc. ("the General Partner") to petition the Bankruptcy Court for an extension of the settlement date. The required fifty-one percent response was not received. As a result, the Partnership defaulted on its obligations which were due on October 20, 1998. The General Partner continues to operate the Partnership's business in the ordinary course while it evaluates the best course of action to follow. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Note B - Basis of Presentation The accompanying unaudited consolidated financial statements of the Partnership 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 General Partner, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine month periods ended September 30, 2000 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2000. For further information, refer to the consolidated financial statements and footnotes thereto included in the Partnership's Annual Report on Form 10-KSB for the fiscal year ended December 31, 1999 for the Partnership. Principles of Consolidation: The Partnership's consolidated financial statements include the accounts of Pelham Place, L.P., a South Carolina limited partnership. Pelham Place, L.P. is the limited partnership which holds title to Lakewood at Pelham (formerly known as Pelham Place Apartments). Pelham Place, L.P. is wholly-owned by the Partnership. All interpartnership transactions have been eliminated. Change in Accounting Principle: Effective January 1, 1999, the Partnership changed its method of accounting to capitalize the cost of exterior painting and major landscaping. The Partnership believes that this accounting principle change is preferable because it provides a better matching of expenses with the related benefit of the expenditures and it is consistent with industry practice and the policies of the General Partner. This accounting change was first reported during the fourth quarter of 1999. Accordingly, net income for the three and nine months ended September 30, 1999 has been restated to reflect the accounting change as if it were reported then. This adjustment decreased net income before the cumulative effect of the accounting change for the three and nine months ended September 30, 1999 by approximately $3,000 ($0.17 per limited partnership unit) and $10,000 ($0.58 per limited partnership unit), respectively. The cumulative effect adjustment of approximately $25,000 is the result of applying the aforementioned change in accounting principle retroactively and is included in income for 1999. The accounting principle change will not have an effect on cash flow, funds available for distribution or fees payable to the General Partner and affiliates. Note C - Plan of Reorganization On March 9, 1987, the original general partners of the Partnership, on behalf of the Partnership, filed a voluntary petition under Chapter 11 of the Federal Bankruptcy Code in U.S. Bankruptcy Court, Central District Court of California ("Court"). The Partnership continued as Debtor-In-Possession to operate its business in the ordinary course subject to control of the Court until the Court confirmed the Partnership's Plan effective October 25, 1988. The Plan was approved by all required classes of creditors. The Plan required that the Partnership make the following payments on October 20, 1998: 1) First, all existing creditors, except prebankruptcy Class 12 creditors ($23,100), would be satisfied; 2) Limited Partners, both original and substitute, who made additional capital contributions under the plan would receive a repayment of the additional contributions totaling approximately $730,000; 3) Class 12 creditors would be paid claims aggregating $23,100; 4) Limited Partners who made additional capital contributions and were original Limited Partners would receive a repayment of their original capital contributions totaling approximately $9,818,000; 5) Limited Partners who did not make additional capital contributions would receive a repayment of one-third of their original capital contributions (i.e., one-third of $1,200,000). Additionally, the Plan required CRPTEX, Inc. to make a capital contribution of $14,500 and loan or expend an additional $117,500 on behalf of the Partnership on an as-needed basis. The Partnership received the $14,500 capital contribution but has not required the additional $117,500. The payments required by numbers 1 and 3 above were timely satisfied. In addition, all other claims provided for in the Plan then outstanding were settled on June 25, 1995 when the Partnership refinanced the then outstanding mortgages encumbering the property. However, the Partnership was unable to satisfy the amounts due to the limited partners indicated in numbers 2, 4, and 5 above and is in default on these obligations. Note D - Transfer of Control Pursuant to a series of transactions which closed on October 1, 1998 and February 26, 1999, Insignia Financial Group, Inc. and Insignia Properties Trust merged into Apartment Investment and Management Company ("AIMCO"), a publicly traded real estate investment trust, with AIMCO being the surviving corporation. As a result, AIMCO acquired 100% ownership interest in the General Partner. The General Partner does not believe that this transaction has had or will have a material effect on the affairs and operations of the Partnership. Note E - Transactions with Affiliated Parties The Partnership has no employees and is dependent on the General Partner and its affiliates for the management and administration of all Partnership activities. The Partnership Agreement provides for certain payments to affiliates for services and as reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. The following transactions with the General Partner and its affiliates were incurred during each of the nine months ended September 30, 2000 and 1999: 2000 1999 (in thousands) Property management fees (included in operating expenses) $ 59 $ 57 Reimbursement for services of affiliates (included in general and administrative expenses and investment property) 58 31 During the nine months ended September 30, 2000 and 1999, affiliates of the General Partner were entitled to receive 5% of gross receipts from the Partnership's investment property as compensation for providing property management services. The Partnership paid to such affiliates approximately $59,000 and $57,000 for the nine months ended September 30, 2000 and 1999, respectively. Affiliates of the General Partner received reimbursements of accountable administrative expenses amounting to approximately $58,000 and $31,000 for the nine months ended September 30, 2000 and 1999, respectively. In addition to its indirect ownership of the general partner interest in the Partnership, AIMCO and its affiliates currently own 2,474.5 limited partnership units in the Partnership representing approximately 14.39% of the outstanding units. A number of these units were acquired pursuant to tender offers made by AIMCO or its affiliates. It is possible that AIMCO or its affiliates will make one or more additional offers to acquire additional limited partnership interests in the Partnership for cash or in exchange for units in the operating partnership of AIMCO. Under the Partnership Agreement, unitholders holding a majority of the Units are entitled to take action with respect to a variety of matters, which would include without limitation, voting on certain amendments to the Partnership Agreement and voting to remove the General Partner. When voting on matters, AIMCO would in all likelihood vote the Units it acquired in a manner favorable to the interest of the General Partner because of their affiliation with the General Partner. Note F - Segment Information Description of the types of products and services from which the reportable segment derives its revenues: The Partnership has one reportable segment: residential properties. The Partnership's residential segment consists of one apartment complex located in Greenville, South Carolina. The Partnership rents apartment units to tenants for terms that are typically twelve months or less. Measurement of segment profit or loss: The Partnership evaluates performance based on segment profit (loss) before depreciation. The accounting policies of the reportable segment are the same as those of the Partnership as described in the Partnership's Annual Report on Form 10-KSB for the year ended December 31, 1999. Segment information for the three and nine month periods ended September 30, 2000 and 1999 is shown in the tables below. The "Other" column includes Partnership administration related items and income and expense not allocated to the reportable segment. Three Months Ended September 30, 2000 Residential Other Totals (in thousands) Rental income $ 374 $ -- $ 374 Other income 30 2 32 Interest expense 118 -- 118 Depreciation 65 -- 65 General and administrative expense -- 55 55 Segment profit (loss) 44 (53) (9) Nine Months Ended September 30, 2000 Residential Other Totals (in thousands) Rental income $ 1,110 $ -- $ 1,110 Other income 77 7 84 Interest expense 352 -- 352 Depreciation 210 -- 210 General and administrative expense -- 184 184 Segment profit (loss) 67 (177) (110) Total assets 3,113 140 3,253 Capital expenditures for investment property 86 -- 86 Three Months Ended September 30, 1999 Residential Other Totals (in thousands) Rental income $ 368 $ -- $ 368 Other income 19 2 21 Interest expense 119 -- 119 Depreciation 59 -- 59 General and administrative expense -- 23 23 Segment profit (loss) 41 (21) 20 Nine Months Ended September 30, 1999 Residential Other Totals (in thousands) Rental income $ 1,037 $ -- $ 1,037 Other income 75 7 82 Interest expense 358 -- 358 Depreciation 182 -- 182 General and administrative expense -- 69 69 Cumulative effect on prior years of change in accounting principle 25 -- 25 Segment profit (loss) 102 (62) 40 Total assets 3,118 257 3,375 Capital expenditures for investment property 52 -- 52 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION The matters discussed in this Form 10-QSB contain certain forward-looking statements and involve risks and uncertainties (including changing market conditions, competitive and regulatory matters, etc.) detailed in the disclosures contained in this Form 10-QSB and the other filings with the Securities and Exchange Commission made by the Partnership from time to time. The discussion of the Partnership's business and results of operations, including forward-looking statements pertaining to such matters, does not take into account the effects of any changes to the Partnership's business and results of operation. Accordingly, actual results could differ materially from those projected in the forward-looking statements as a result of a number of factors, including those identified herein. The Partnership's investment property consists of one apartment complex. The following table sets forth the average occupancy of the property for the nine months ended September 30, 2000 and 1999: Average Occupancy Property 2000 1999 Lakewood at Pelham 97% 96% Greenville, South Carolina Results of Operations The Partnership reported net losses of approximately $9,000 and $110,000 for the three and nine months ended September 30, 2000 as compared to net income of approximately $20,000 and $40,000 for the three and nine months ended September 30, 1999. The decrease in net income for both the three and nine months ended September 30, 2000 is primarily due to an increase in total expense which was partially offset by an increase in total revenues. The decrease in net income for the nine months ended September 30, 2000 is also due to the recognition in 1999 of the cumulative effect on prior years of a change in accounting principle. Total expenses increased for the three and nine month periods ended September 30, 2000 primarily due to an increase in general and administrative expense and, to a lesser extent, increases in operating and depreciation expenses. Operating expense increased primarily due to an increase in salaries and related benefits, and to a lesser extent, an increase in insurance expense. Depreciation expense increased due to an increase in depreciable assets due to property improvements and replacements completed in the last twelve months. Interest expense and property tax expense remained relatively constant for the comparable periods. General and administrative expenses increased primarily due to an increase in the services and the costs of such services provided by the General Partner and its affiliates, and increased professional fees necessary to manage the Partnership. Included in general and administrative expense at both September 30, 2000 and 1999 are management reimbursements to the General Partner allowed under the Partnership Agreement. Also included are costs associated with the quarterly and annual communications with investors and regulatory agencies and the annual audit required by the Partnership Agreement. Total revenues for the nine month period ended September 30, 2000 increased primarily due to an increase in rental income. For the three month period ended September 30, 2000, total revenues increased due to increases in rental income and other income. Rental income increased for the three and nine month periods as a result of the improved occupancy at the property, an increase in the average rental rate, as well as a decrease in concessions. Other income increased for the three month period primarily due to an increase in interest income and tenant charges. Effective January 1, 1999, the Partnership changed its method of accounting to capitalize the cost of exterior painting and major landscaping. The Partnership believes that this accounting principle change is preferable because it provides a better matching of expenses with the related benefit of the expenditures and it is consistent with industry practice and the policies of the General Partner. This accounting change was first reported during the fourth quarter of 1999. Accordingly, net income for the three and nine months ended September 30, 1999 has been restated to reflect the accounting change as if it were reported then. This adjustment decreased net income before the cumulative effect of the accounting change for the three and nine months ended September 30, 1999 by approximately $3,000 ($0.17 per limited partnership unit) and $10,000 ($0.58 per limited partnership unit), respectively. The cumulative effect adjustment of approximately $25,000 is the result of applying the aforementioned change in accounting principle retroactively and is included in income for 1999. The accounting principle change will not have an effect on cash flow, funds available for distribution or fees payable to the General Partner and affiliates. As part of the ongoing business plan of the Partnership, the General Partner monitors the rental market environment of its investment property to assess the feasibility of increasing rents, maintaining or increasing occupancy levels and protecting the Partnership from increases in expenses. As part of this plan, the 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 General Partner will be able to sustain such a plan. Liquidity and Capital Resources At September 30, 2000, the Partnership had cash and cash equivalents of approximately $669,000 as compared to approximately $503,000 at September 30, 1999. The increase in cash and cash equivalents of approximately $76,000 for the nine months ended September 30, 2000, from the Partnership's calendar year end, is due to approximately $167,000 of cash provided by operating activities, which was partially offset by approximately $51,000 of cash used in financing activities and approximately $40,000 of cash used in investing activities. Cash used in investing activities consisted of property improvements and replacements, which was partially offset by net withdrawals from escrow accounts maintained by the mortgage lender. Cash used in financing activities consisted of payments of principal made on the mortgage encumbering the Partnership's investment property. The Partnership invests its working capital reserves in a money market account. 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 including satisfaction of remaining claims related to the Partnership's Plan of Reorganization, as described below, and to comply with Federal, state, and local legal and regulatory requirements. Capital improvements planned at the Partnership's investment property are detailed below. Approximately $88,000 has been budgeted for capital improvements at Lakewood at Pelham for the year 2000, consisting primarily of floor covering replacement, lighting upgrades, structural improvements, and appliance replacements. During the nine months ended September 30, 2000, the Partnership expended approximately $86,000 on budgeted and unbudgeted capital improvements at Lakewood at Pelham, consisting primarily of carpet and tile replacement, appliance replacements, air conditioning unit replacements and installing and painting handrails. These improvements were funded by replacement reserves and operations. Additional improvements may be considered and will depend on the physical condition of the property as well as replacement reserves and anticipated cash flow generated by the property. The additional capital expenditures will be incurred only if cash is available from operations or from Partnership reserves. Partnership reserves are sufficient to cover the estimated costs of the capital improvements planned for the year 2000. However, the Partnership does not have sufficient assets to fulfill its obligation under the Plan of Reorganization ("Plan") and in fact defaulted on its obligations due October 20, 1998. See discussion below for detail as to the Partnership's Plan with respect to meeting its short term needs under the Plan. No distributions were declared or paid during either of the nine months ended September 30, 2000 or 1999, and none are expected in the future. On March 9, 1987, the original general partners of the Partnership, on behalf of the Partnership, filed a voluntary petition under Chapter 11 of the Federal Bankruptcy Code in U.S. Bankruptcy Court, Central District of California ("Court"). The Partnership continued as Debtor-In-Possession to operate its business in the ordinary course until the Court confirmed the Partnership's Plan effective October 25, 1988. The Plan was approved by all required classes of creditors. The Plan required that the Partnership make the following payments on October 20, 1998: 1) First, all existing creditors, except prebankruptcy Class 12 creditors ($23,100), would be satisfied; 2) Limited Partners, both original and substitute, who made additional capital contributions under the plan would receive a repayment of the additional contributions totaling approximately $730,000; 3) Class 12 creditors would be paid claims aggregating $23,100; 4) Limited Partners who made additional capital contributions and were original Limited Partners would receive a repayment of their original capital contributions totaling approximately $9,818,000; 5) Limited Partners who did not make additional capital contributions would receive a repayment of one-third of their original capital contributions (i.e., one-third of $1,200,000). Additionally, the Plan required CRPTEX, Inc. to make a capital contribution of $14,500 and loan or expend an additional $117,500 on behalf of the Partnership on an as-needed basis. The Partnership received the $14,500 capital contribution but has not required the additional $117,500. The payments required by numbers 1 and 3 above were timely satisfied. In addition, all other claims provided for in the Plan then outstanding were settled on June 25, 1995 when the Partnership refinanced the then outstanding mortgages encumbering the property. However, the Partnership was unable to satisfy the amounts due to the limited partners indicated in numbers 2, 4, and 5 above and is in default on these obligations. In order to satisfy these obligations, the Partnership would be required to sell the investment property. As an alternative, the Partnership could seek authorization from the Limited Partners to extend the payment date of October 20, 1998 to a future period. The limited partners were approached in August 1998 and asked to either approve a sale of the Partnership's sole investment property or for the General Partner to petition the Bankruptcy Court for an extension of the settlement date. The required fifty-one percent response was not received. As a result, the Partnership defaulted on its obligations which were due on October 20, 1998. The General Partner is continuing to see that the Partnership operates its business in the ordinary course while it evaluates the best course of action to follow. Additionally, the Partnership's mortgage indebtedness of approximately $5,555,000 at September 30, 2000 matures in July 2005, and would require a property sale or refinancing at that time. However, there can be no assurance that these courses of action will be successful and that the Partnership will have sufficient funds to meet its obligations in 2000 or beyond. PART II - OTHER INFORMATION 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, 2000. 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. MCCOMBS REALTY PARTNERS By: CRPTEX, INC. General Partner By: /s/Patrick J. Foye Patrick J. Foye Executive Vice President By: /s/Martha L. Long Martha L. Long Senior Vice President and Controller Date: November 13, 2000 EX-27 2 0002.txt THIRD QUARTER 10-QSB
5 This schedule contains summary financial information extracted from MCCOMBS REALTY PARTNERS 2000 Third Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. 0000759198 MCCOMBS REALTY PARTNERS 1,000 9-MOS DEC-31-2000 Jul-01-2000 SEP-30-2000 669 0 28 0 0 0 6,285 (3,933) 3,253 0 5,555 0 0 0 (2,513) 3,253 0 1,194 0 0 1,304 0 352 0 0 0 0 0 0 (110) (6.34) 0 Registrant has an unclassified balance sheet. Multiplier is 1.
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