-----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, VPLZwRumA0zalB9i02CR4Ccnztz66nlKkb2pm72x8Pw3iID/gX9ux+PMn49fw1CA 75oAOB3S3TO645x+dZT16w== 0000763049-96-000002.txt : 19960517 0000763049-96-000002.hdr.sgml : 19960517 ACCESSION NUMBER: 0000763049-96-000002 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960515 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ANGELES INCOME PROPERTIES LTD IV CENTRAL INDEX KEY: 0000763049 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 953974194 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-14283 FILM NUMBER: 96565183 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 March 31, 1996 [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT For the transition period.........to......... Commission file number 0-14283 ANGELES INCOME PROPERTIES, LTD. IV (Exact name of small business issuer as specified in its charter) California 95-3974194 (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 (864) 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 a) ANGELES INCOME PROPERTIES, LTD. IV CONSOLIDATED BALANCE SHEET (Unaudited) (in thousands, except unit data) March 31, 1996 Assets Cash and cash equivalents: Unrestricted $ 3,145 Restricted--tenant security deposits 6 Accounts receivable, net of allowance of $167 153 Escrows for taxes 129 Other assets 605 Investment properties Land $ 2,708 Buildings and related personal property 20,063 22,771 Less accumulated depreciation (10,717) 12,054 $ 16,092 Liabilities and Partners' Deficit Liabilities Accounts payable $ 27 Tenant security deposits 6 Accrued taxes 57 Other liabilities 132 Mortgage notes payable 14,395 Equity interest in net liabilities of joint venture, net of advances of $1,347 (Note B) 12,828 Partners' Deficit General partner $ (1,366) Limited partners (131,760 units issued and outstanding) (9,987) (11,353) $ 16,092 See Accompanying Notes to Consolidated Financial Statements b) ANGELES INCOME PROPERTIES, LTD. IV CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data) Three Months Ended March 31, 1996 1995 Revenues: Rental income $ 1,096 $ 1,073 Other income 26 8 Total revenues 1,122 1,081 Expenses: Operating 292 280 General and administrative 80 107 Maintenance 63 66 Depreciation 259 276 Interest 367 374 Property taxes 57 53 Bad debt (recovery) expense, net (132) 27 Total expenses 986 1,183 Income (loss) before equity in loss of joint ventures 136 (102) Equity in loss of joint venture(s) (479) (509) Net loss $ (343) $ (611) Net loss allocated to general partner (2%) $ (7) $ (12) Net loss allocated to limited partners (98%) (336) (599) Net loss $ (343) $ (611) Net loss per limited partnership unit $ (2.55) $ (4.55) See Accompanying Notes to Consolidated Financial Statements c) ANGELES INCOME PROPERTIES, LTD. IV CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' DEFICIT - March 31, 1996 (Unaudited) (in thousands, except unit data)
Limited Partnership General Limited Units Partner Partners Total Original capital contributions 131,800 $ 1 $65,900 $ 65,901 Partners' deficit at December 31, 1995 131,760 $(1,359) $(9,651) $ (11,010) Net loss for the three months ended March 31, 1996 -- (7) (336) (343) Partners' deficit at March 31, 1996 131,760 $(1,366) $(9,987) $ (11,353) See Accompanying Notes to Consolidated Financial Statements
d) ANGELES INCOME PROPERTIES, LTD. IV CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
Three Months Ended March 31, 1996 1995 Cash flows from operating activities: Net loss $ (343) $ (611) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 259 276 Amortization of loan costs and leasing commissions 58 29 Bad debt (recovery) expense, net (23) 27 Equity in loss of joint venture(s) 479 509 Change in accounts: Accounts receivable 89 (47) Escrows for taxes 93 70 Other assets (195) (10) Accounts payable (37) 20 Accrued taxes (90) (79) Other liabilities (9) 61 Net cash provided by operating activities 281 245 Cash flows from investing activities: Property improvements and replacements (32) (58) Advances to joint ventures (456) (429) Distributions from joint venture -- 963 Net cash (used in) provided by investing activities (488) 476 Cash flows used in financing activities: Payments on mortgage notes payable (74) (67) Net (decrease) increase in cash (281) 654 Cash and cash equivalents at beginning of period 3,426 548 Cash and cash equivalents at end of period $ 3,145 $ 1,202 Supplemental disclosure of cash flow information: Cash paid for interest $ 356 $ 363 See Accompanying Notes to Consolidated Financial Statements
e) ANGELES INCOME PROPERTIES, LTD. IV NOTES TO CONSOLIDATED 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 General Partner, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 1996, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 1996. For further information, refer to the financial statements and footnotes thereto included in the Angeles Income Properties Ltd. IV (the "Partnership") annual report on Form 10-KSB for the fiscal year ended December 31, 1995. Certain reclassifications have been made to the 1995 information to conform to the 1996 presentation. Note B - Investment in Joint Venture The Partnership has a 66.7% investment in Northtown Mall Partners ("Northtown") which is shown as "Equity interest in net liabilities of the joint venture" on the balance sheet. The Partnership had a 43% investment in the Fort Worth Option Joint Venture ("Fort Worth"), a 43% investment in the Burlington Outlet Mall Joint Venture ("Burlington") and a 50% investment in the Moraine West Carrollton Joint Venture ("Moraine"). The Partnership no longer has an investment in Fort Worth, Burlington or Moraine due to the sale of Fort Worth's last investment property, the foreclosure of Burlington's investment property and the dissolution of Moraine during 1995. The condensed balance sheet information as of March 31, 1996, for Northtown and Burlington is as follows: Northtown Burlington (in thousands) Assets Cash $ 420 $ 26 Other assets 7,751 2 Investment properties, net 25,833 -- Total $34,004 $ 28 Note B - Investment in Joint Venture (continued) Liabilities and Partners' (Deficit) Capital Northtown Burlington (in thousands) Other liabilities $ 3,540 $ 17 Mortgage note payable 51,649 -- Partners' (deficit) capital (21,185) 11 Total $ 34,004 $ 28 The condensed profit and loss statements for the three months ended March 31, 1996 and 1995, for the joint ventures is as follows: Northtown Burlington (in thousands) 1996 Revenue $ 2,573 $ 11 Costs and expenses (3,293) -- Net (loss) income $ (720) $ 11
Northtown Burlington Moraine Fort Worth 1995 Revenue $ 2,543 $ 143 $ 13 $ 174 Costs and expenses (3,147) (273) (1) (123) Loss on sale of investment property -- -- -- (42) Net (loss) income $ (604) $ (130) $ 12 $ 9
The Partnership's equity in the losses of the joint ventures was $479,000 and $509,000 for the three months ended March 31, 1996 and 1995, respectively. The Partnership accounts for its 66.7% investment in Northtown using the equity method of accounting. Under the equity method, the Partnership records its equity interest in earnings or losses of the joint venture; however, the investment in the joint venture will be recorded at an amount less than zero (a liability) to the extent of the Partnership's share of net liabilities of the joint venture. Note C - 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 payments to affiliates for services and as reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. The following payments were made to the General Partner and affiliates during the three months ended March 31, 1996 and 1995: 1996 1995 (in thousands) Property management fees $ 39 $ 32 Lease commissions 39 5 Reimbursement for services of affiliates 48 82 The Partnership insures its properties under a master policy through an agency and insurer unaffiliated with the General Partner. An affiliate of the 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 General Partner who receives payment on these obligations from the agent. The amount of the Partnership's insurance premiums accruing to the benefit of the affiliate of the General Partner by virtue of the agent's obligations is not significant. In July 1993, Angeles Mortgage Investment Trust ("AMIT"), a real estate investment trust formerly affiliated with Angeles Corporation ("Angeles"), initiated litigation against Fort Worth and other partnerships which loaned money to AMIT seeking to avoid repayment of such obligations. The Partnership subsequently filed a counterclaim against AMIT seeking to enforce the obligation, the principal amount of which was $2,240,000 plus accrued interest from March 1993 ("AMIT Obligation"). On November 9, 1994, Fort Worth executed a definitive Settlement Agreement to settle the dispute with respect to the AMIT obligation. The actual closing of the Settlement Agreement occurred April 14, 1995. The Partnership's claim against AMIT was satisfied by a cash payment to Fort Worth by AMIT totalling $1,933,000 (the "Settlement Amount") plus interest at closing. These funds were applied against the Partnership's $5,000,000 note receivable from Fort Worth (see discussion below). On August 9, 1995, Fort Worth and Angeles entered into an agreement in principle regarding the allowance of an amended claim for the deficiency between the original principal and the Settlement Amount (the "deficiency"). The amended claim equalled 90% of the deficiency, or $276,000. In January 1996, the Partnership received $48,000 as payment on the deficiency. 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 1.2% of the distributions of net cash distributed by AMIT. These 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 1.2% 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. MAE GP may choose to vote these shares as it deems appropriate in the future. In addition, Liquidity Assistance, LLC, ("LAC"), an affiliate of the General Partner and an affiliate of Insignia Financial Group, Inc., which provides property management and partnership administration services to the Partnership, owns 63,200 Class A Shares of AMIT. These Class A Shares entitle LAC to vote approximately 1.5% of the total shares. As part of the settlement, MAE GP granted to AMIT an option to acquire the Class B shares owned by it. 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 these 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. In 1992, the Partnership loaned Fort Worth $5,000,000 to cover leasing commissions, tenant improvements, and capital expenditures. The note payable requires interest at a rate of prime plus 1.5% with monthly interest only payments through January 1996, at which time the principal was due. The note was in default in prior years due to non-payment of interest when due and is fully reserved. Note C - Transactions with Affiliated Parties (continued) On December 22, 1994, the Partnership entered into an agreement with Fort Worth and Angeles Income Properties, Ltd. V ("AIPL V"), an affiliate of the General Partner and the other 57% owner of Fort Worth, whereby Fort Worth transferred, assigned and delivered to the Partnership all of Fort Worth's right, title and interests in and to all payment, distributions, profits, returns of capital and benefits accruing from the repayment by AMIT of the loan made to AMIT from Fort Worth. This transfer effectively transferred AIPL V's right, title and interest in and to all payment, distributions, profits, returns of capital and benefits accruing from the repayment by AMIT of the loan made to AMIT from Fort Worth. AIPL V has consented to this transfer, assignment and delivery. The Partnership may make advances to the affiliated joint venture as deemed appropriate by the General Partner. These advances do not bear interest and do not have stated terms of repayment. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION The Partnership's investment properties consist of two commercial properties. The following table sets forth the average occupancy of the properties for the three months ended March 31, 1996 and 1995: Average Occupancy Property 1996 1995 Factory Merchant's Mall 90% 89% Pigeon Forge, Tennessee Eastgate Market Place Walla Walla, Washington 93% 93% The Partnership realized a net loss of $343,000 for the three months ended March 31, 1996, as compared to a net loss of $611,000 for the three months ended March 31, 1995. The decrease in the net loss for the three months ended March 31, 1996, as compared to the three months ended March 31, 1995, is primarily due to an increase in revenues, a decrease in general and administrative expenses, an increase in bad debt recovery and a decrease in the equity in loss of joint ventures (see discussion below). The increase in rental revenues for the three months ended March 31, 1996, as compared to the three months ended March 31, 1995, is a result of an increase in average rental rates at Factory Merchant's Mall. The increase in other income is due to an increase in interest income as a result of larger cash balances available for investment. General and administrative expenses decreased primarily due to a decrease in partnership accounting, investor services and asset management cost reimbursements. During the three months ended March 31, 1996, the Partnership recognized bad debt recovery of $48,000 from AMIT (see discussion at "Note C") and $62,000 from Fort Worth as payment on its note payable to the Partnership. As mentioned previously, the receivables on the Partnership's books had been fully reserved. In addition, there was a reduction of the reserve required based on a review of tenant accounts receivable. The Partnership's equity in the losses of the joint ventures was $479,000 and $509,000 for the three months ended March 31, 1996 and 1995, respectively. The decrease in the equity loss of joint ventures can be attributed to the loss recognized on the Partnership's investment in Burlington during the three months ended March 31, 1995. Due to the foreclosure of the Burlington investment property in 1995, this loss did not recur in 1996. This loss was partially offset by the increased loss at Northtown due to an increase in insurance and real estate tax expense. As part of the ongoing business plan of the Partnership, the 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 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. At March 31, 1996, the Partnership had unrestricted cash of $3,145,000 compared to $1,202,000 at March 31, 1995. Net cash provided by operating activities increased due to a decreased net loss offset, in part, by an increase in other assets and decreases in accounts payable and other liabilities. Net cash from investing activities decreased as a result of a non-recurring distribution received from Moraine in 1995. Net cash used in financing activities remained stable. The Northtown Mall property has continued to experience cash shortfalls and has been dependent upon the Partnership and Angeles Income Properties Ltd. III (the 33.3% owner of Northtown) to cover such shortfalls in order to meet operating and debt service requirements for this property (see discussion below for the General Partner's plans regarding this investment property). 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 properties 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. The mortgage indebtedness of $14,395,000, which is secured by the Factory Merchant's Mall investment property, matures in December 1997. The General Partner is currently in negotiations to refinance this indebtedness, however, the outcome of such negotiations cannot presently be determined. Future cash distributions will depend on the levels of net cash generated from operations, refinancings, property sales and the availability of cash reserves. There were no cash distributions in the first three months of 1996 or 1995. On March 15, 1991, Northtown and the holder of the Northtown Mall mortgage note payable entered into an Option Agreement ("Option") whereby such lender has the right and an option to purchase the Northtown Mall property on the terms and conditions as set forth in the Option. The purchase price of the property, as set forth in the Option, is defined as the fair market value of the property. Such Option can be exercised by written notice by the lender at specified dates. The General Partner is presently in negotiations to refinance this indebtedness, however, the outcome of such negotiations cannot presently be determined. A purchase agreement was executed on May 8, 1994, for the sale of all of the Moraine properties to an affiliate of the third party managing agent. The sale closed on July 21, 1994. Moraine made a final distribution of $1,931,000 in 1995, of which the Partnership's pro-rata share was $963,000, and the joint venture was then dissolved. In March 1995, Fort Worth's remaining property was sold for $300,000 to a tenant of the property. All remaining cash was used in 1996 to partially satisfy Fort Worth's debt to the Partnership. The remaining debt was forgiven by the Partnership. On October 30, 1995, the Partnership lost Burlington Outlet Mall located in Burlington, NC, through a foreclosure by an unaffiliated mortgage holder. The property was not generating sufficient cash flow to meet debt service requirements. The non-payment of principal and interest constituted a default under terms of the mortgage agreement and allowed the holder of the mortgage agreement to foreclose on the property. The Partnership deemed it to be in its best interest not to contest the foreclosure action. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS In July 1993, AMIT initiated litigation against Fort Worth, and other partnerships which loaned money to AMIT seeking to avoid repayment of such obligations. The Partnership subsequently filed a counterclaim against AMIT seeking to enforce the obligation, the principal amount of which was $2,240,000 plus accrued interest from March 1993 ("AMIT Obligation"). On November 9, 1994, Fort Worth executed a definitive Settlement Agreement to settle the dispute with respect to the AMIT obligation. The actual closing of the Settlement occurred April 14, 1995. The Partnership's claim against AMIT was satisfied by a cash payment by AMIT totalling $1,933,000 (the "Settlement Amount") plus interest at closing. These funds were applied against the Partnership's $5,000,000 note receivable from Fort Worth. On August 9, 1995, Fort Worth and Angeles entered into an agreement in principle regarding the allowance of an amended claim for the deficiency between the original principal and the Settlement Amount (the "deficiency"). The amended claim equalled 90% of the deficiency, or $276,000. In January 1996, the Partnership received $48,000 as payment on the deficiency. 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 1.2% of the distributions of net cash distributed by AMIT. These 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 1.2% 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. MAE GP may choose to vote these shares as it deems appropriate in the future. In addition, Liquidity Assistance, LLC, ("LAC"), an affiliate of the General Partner and an affiliate of Insignia Financial Group, Inc., which provides property management and partnership administration services to the Partnership, owns 63,200 Class A Shares of AMIT. These Class A Shares entitle LAC to vote approximately 1.5% of the total shares. As part of the settlement, MAE GP granted to AMIT an option to acquire the Class B Shares owned by it. 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 these 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. Additionally, 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. However, of these total deposits, at least $81,000 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 General Partner of the Partnership 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. The Partnership, along with other affiliates, has been named in a suit brought by a company which owned a 20% interest ("Plaintiff") in Fort Worth's investment property, the W.T. Waggoner Building, which was sold in 1995. The Plaintiff is suing for breach of contract and negligence for mismanagement of the property. The General Partner believes that there is no merit in this suit and intends to vigorously defend it. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibits: None. b) Reports on Form 8-K: None filed during the three months ended March 31, 1996. 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. IV By: Angeles Realty Corporation II General Partner By: /s/Carroll D. Vinson Carroll D. Vinson President By: /s/Robert D. Long, Jr. Robert D. Long, Jr. Vice President/CAO Date: May 15, 1996 EX-27 2
5 This schedule contains summary financial information extracted from Angeles Income Properties, Ltd. IV 1996 First Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing 0000763049 ANGELES INCOME PROPERTIES, LTD. IV 1,000 3-MOS DEC-31-1996 MAR-31-1996 3,145 0 153 167 0 0 22,771 10,717 16,092 0 14,395 0 0 0 (11,353) 16,092 0 1,112 0 0 986 0 367 (343) 0 (343) 0 0 0 (343) (2.55) 0 The Registrant has an unclassified balance sheet. Amount not in thousands.
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