-----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, B3aePZscKPAQvZwR5u1D/qIKq97jILUQ/2PogtqN/vngLN6YIJyQ63YE1n5h5rR2 f5pW9+EUddbmvyJ5xiQj2g== 0000812187-97-000004.txt : 19970509 0000812187-97-000004.hdr.sgml : 19970509 ACCESSION NUMBER: 0000812187-97-000004 CONFORMED SUBMISSION TYPE: 10QSB PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970508 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ANGELES PARTNERS 16 CENTRAL INDEX KEY: 0000812187 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 954106417 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10QSB SEC ACT: 1934 Act SEC FILE NUMBER: 000-16209 FILM NUMBER: 97598435 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 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, 1997 [ ] TRANSITION REPORT PURSUANT TO 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT For the transition period.........to......... Commission file number 0-16209 ANGELES PARTNERS 16 (Exact name of small business issuer as specified in its charter) California 95-4106417 (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) One Insignia Financial Plaza Greenville, South Carolina 29602 (Address of principal executive offices) (Zip Code) (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 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 PARTNERS 16 BALANCE SHEET (Unaudited) (in thousands, except unit data) March 31, 1997 Assets Cash and cash equivalents: Unrestricted $ 583 Restricted--tenant security deposits 69 Accounts receivable 22 Escrow for taxes 172 Restricted escrows (Note D) 1,222 Other assets 214 Investment properties: Land $ 1,076 Buildings and related personal property 10,689 11,765 Less accumulated depreciation (3,378) 8,387 $ 10,669 Liabilities and Partners' Deficit Liabilities Accounts payable $ 22 Tenant security deposits 69 Accrued taxes 362 Accrued interest 1,488 Other liabilities (Note D) 856 Notes payable, including $7,193 in default 13,610 Partners' Deficit General partner $ (175) Limited partners (13,993 units issued and outstanding) (5,563) (5,738) $ 10,669 See Accompanying Notes to Financial Statements b) ANGELES PARTNERS 16 STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except unit data) Three Months Ended March 31, 1997 1996 Revenues: Rental income $ 609 $ 591 Other income 53 53 Total revenues 662 644 Expenses: Operating 237 215 General and administrative 25 37 Maintenance 40 34 Depreciation 75 73 Interest 287 322 Property taxes 107 121 Total expenses 771 802 Loss before gain on sale of investment property (109) (158) Gain on sale of investment property -- 64 Net loss $ (109) $ (94) Loss allocated to general partner (1%) $ (1) $ (1) Loss allocated to limited partners (99%) (108) (93) Net loss $ (109) $ (94) Net loss per limited partnership unit: $ (7.72) $ (6.63) See Accompanying Notes to Financial Statements c) ANGELES PARTNERS 16 STATEMENT OF CHANGES IN PARTNERS' DEFICIT (Unaudited) (in thousands, except unit data)
Limited Partnership General Limited Units Partner Partners Total Original capital contributions 14,050 $ 1 $ 14,050 $ 14,051 Partners' deficit at December 31, 1996 13,993 $ (174) $ (5,455) $ (5,629) Net loss for the three months ended March 31, 1997 -- (1) (108) (109) Partners' deficit at March 31, 1997 13,993 $ (175) $ (5,563) $ (5,738) See Accompanying Notes to Financial Statements
d) ANGELES PARTNERS 16 STATEMENTS OF CASH FLOWS (Unaudited) (in thousands)
Three Months Ended March 31, 1997 1996 Cash flows from operating activities: Net loss $ (109) $ (94) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation 75 73 Amortization of loan costs 2 2 Gain on sale of investment property -- (64) Change in accounts: Restricted cash (2) (1) Accounts receivable 1 126 Escrows for taxes 53 65 Other assets (2) -- Accounts payable (15) (11) Tenant security deposit liabilities 4 2 Accrued taxes (43) (46) Accrued interest 157 189 Other liabilities (52) (44) Net cash provided by operating activities 69 197 Cash flows from investing activities: Property improvements and replacements (18) (6) Deposits to restricted escrows (116) (94) Withdrawals from restricted escrows 137 155 Net cash provided by investing activities 3 55 Cash flows used in financing activities: Payments on notes payable (18) (139) Net increase in unrestricted cash and cash equivalents 54 113 Unrestricted cash and cash equivalents at beginning of period 529 406 Unrestricted cash and cash equivalents at end of period $ 583 $ 519 Supplemental disclosure of cash flow information: Cash paid for interest $ 127 $ 131 See Accompanying Notes to Financial Statements
e) ANGELES PARTNERS 16 NOTES TO FINANCIAL STATEMENTS (Unaudited) March 31, 1997 NOTE A - GOING CONCERN The financial statements have been prepared assuming Angeles Partners 16 (the "Partnership") will continue as a going concern. The Partnership has incurred recurring operating losses, is in default on a portion of its indebtedness and continues to suffer from inadequate liquidity. As a result, the Partnership has not had cash available to perform the substantial rehabilitation necessary at each of the investment properties. The first mortgage, in the amount of $4,306,000, which is secured by Whispering Pines Apartments, is in default due to nonpayment upon its maturity in January 1997. Angeles Realty Corporation II (the "General Partner") is in negotiations with the current lender and others to refinance this indebtedness, however there can be no assurances that these negotiations will be successful. In addition, the second trust deed, in the amount of $375,000, which is secured by Silver Ridge Apartments, matures in December 1997. The General Partner anticipates that the Partnership will be able to repay this obligation upon maturity. The Partnership is in default on $2,887,000 of unsecured indebtedness payable to Angeles Mortgage Investment Trust ("AMIT") (See "Note C"), plus related accrued interest of $815,000, due to its inability to make interest and principal payments when due. The lender has obtained a judgment against the Partnership that secures their position, however the lender has also indicated that they will not act on the judgment. The Partnership also has an unsecured working capital loan payable to Angeles Acceptance Pool, L.P. ("AAP") of $1,517,000 plus related accrued interest of $629,000 that is due in November 1997. The General Partner is presently negotiating forbearance agreements with AMIT and AAP, however there can be no assurance that these negotiations with the lenders will be successful. Limited sources of additional financing are available to the Partnership and the General Partner does not have any other plans to remedy the liquidity problems the Partnership is currently experiencing. The General Partner anticipates positive cash flow after the payment of operating and capital expenditures for Whispering Pines Apartments for 1997. Additionally, the General Partner anticipates positive cash flow after the payment of operating and capital expenditures and debt service for Silver Ridge Apartments for 1997. The General Partner anticipates that the unrestricted cash of $583,000 at March 31, 1997, will be sufficient to cover all Partnership level operating expenditures for the remainder of 1997; however, it does not anticipate paying all AMIT and AAP debt service costs. As a result of the above conditions, there is substantial doubt about the Partnership's ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability or classification of assets or amounts or classification of liabilities that may result from these uncertainties. NOTE B - 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, 1997, are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 1997. 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, 1996. Certain reclassifications have been made to the 1996 balances to conform to the 1997 presentation. 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 a reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. The following amounts were paid to the General Partner and affiliates during the three months ended March 31, 1997 and 1996: 1997 1996 (in thousands) Property management fees $32 $31 Reimbursement for services of affiliates 15 14 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 were 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 November 1992, AAP, a Delaware limited partnership was organized to acquire and hold the obligations evidencing the working capital loan previously provided to the Partnership by Angeles Capital Investments, Inc. ("ACII"). Angeles Corporation ("Angeles") is the 99% limited partner of AAP and Angeles Acceptance Directives, Inc. ("AAD"), an affiliate of the General Partner, was, until April 14, 1995, the 1% general partner of AAP. On April 14, 1995, as part of a settlement of claims between affiliates of the General Partner and Angeles, AAD resigned as general partner of AAP and simultaneously received a 1/2% limited partner interest in AAP. An affiliate of Angeles now serves as the general partner of AAP. The AAP working capital loan funded the Partnership's operating deficits in prior years. Total indebtedness, including accrued interest of $629,000, was $2,146,000 at March 31, 1997, with monthly interest only payments at the prime rate plus 2% from available cash flow. Principal is to be paid the earlier of i) the availability of funds, ii) the sale of one or more properties owned by the Partnership generating excess proceeds, or iii) November 25, 1997. Total interest expense for this loan was $39,000 for the three months ended March 31, 1997 and 1996. AMIT currently holds two unsecured notes receivable from the Partnership. Total indebtedness of $2,887,000 is in default at March 31, 1997, due to non-payment of principal and interest when due. Total interest expense on this financing was $118,000 and $155,000 for the three months ended March 31, 1997 and 1996, respectively. Accrued interest was $815,000 at March 31, 1997. MAE GP Corporation ("MAE GP"), an affiliate of the General Partner, owns 1,675,113 Class B Shares of AMIT. The terms of the Class B Shares provide that they are convertable, in whole or in part, into Class A Shares on the basis of 1 Class A Share for every 49 Class B Shares (however, in connection with the settlement agreement described in the following paragraph, MAE GP has agreed not to convert the Class B Shares so long as AMIT's option is outstanding). These Class B Shares entitle MAE GP to receive 1% 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, providing MAE GP with approximately 39% of the total voting power of AMIT (unless and until converted to Class A Shares, in which case the percentage of the vote controlled represented by the shares held by MAE GP would approximate 1.3% 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 and 1996 annual meetings 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, Insignia Properties, L.P. ("IPLP"), an affiliate of the General Partner and an affiliate of Insignia Financial Group, Inc. ("Insignia"), which provides property management and partnership administration services to the Partnership, owns 96,800 Class A Shares of AMIT at March 31, 1997. These Class A Shares represent approximately 2.2% of the total voting power 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 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. In connection with such settlement, AMIT delivered to MAE GP cash in the sum of $250,000 at closing (which occurred April 14, 1995) as payment for the option. If and when the option is exercised, AMIT will be required to remit to MAE GP an additional $94,000. Simultaneously with the execution of the option and as part of the settlement, MAE GP executed an irrevocable proxy in favor of AMIT, the result of which is that MAE GP is permitted 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 is obligated to deliver 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). On April 3, 1997, Insignia and AMIT entered into a non-binding agreement in principle contemplating, among other things, a business combination of AMIT and Insignia Properties Trust, an entity owned 98% by Insignia and its affiliates ("IPT"). It is anticipated that the resulting combined entity would be owned approximately 82% by Insignia and its affiliates and 18% by the pre-combination AMIT shareholders (including MAE GP and IPLP). The proposed transaction is contingent upon, among other things, satisfactory review of the business, operations, properties and assets of AMIT and IPT, the negotiation and execution of definitive agreements and the approval of the proposed transaction by the trustees and shareholders of each of AMIT and IPT. NOTE D - SALE OF INVESTMENT PROPERTY On June 12, 1995, the Partnership sold the North Prior Industrial Park to an unrelated party. The net proceeds were used to pay the first mortgage and related accrued interest, to pay AMIT in partial satisfaction of a recourse second mortgage, and to fund restricted escrows. The holder of the first mortgage forgave $56,000, which the Partnership recognized as an extraordinary gain on extinguishment of debt. The unpaid balance of the note payable to AMIT is now unsecured Partnership debt (see "Note C"). As required by the sales agreement, the Partnership established three escrows, two of which have not been expended at March 31, 1997, as described below: Environmental Escrow - This escrow was established for costs associated with fuel oil contamination at the property. In January 1993, a local fuel oil distributor pumped fuel oil into a testing well instead of into the storage tank at North Prior Industrial Park. The Partnership notified the necessary authorities and engaged an environmental engineering firm to develop a plan of action to clean up the site. The cost of the clean up, which is not covered by insurance, is estimated to be approximately $900,000 over a five year period. A liability has been recorded to cover the estimated costs to clean-up the site and is included in "Other liabilities", and the funds have been set aside in an escrow account. At March 31, 1997, the balance remaining in the account was $860,000. The Partnership entered into an agreement with the buyer of the property limiting the Partnership's liability, with regard to the clean up of this site, to the balance of the escrow account. This agreement will terminate when the Partnership receives a "Site Closure Letter" from the Minnesota Pollution and Control Agency. Upon receipt of this letter, any remaining funds in the escrow account will be used to pay down the AMIT debt discussed at Note C. Attorney Fee Escrow - This escrow is being held for attorney fees relating to the environmental issue described above. At March 31, 1997, the balance in this account is $2,000. All funds are expected to be used for attorney fees; however, any remaining funds will be used to reduce the debt to AMIT. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS The Partnership's investment properties consist of two apartment complexes. The following table sets forth the average occupancy of the properties for the three months ended March 31, 1997 and 1996: Average Occupancy Property 1997 1996 Whispering Pines Apartments Fitchburg, Wisconsin (1) 98% 90% Silver Ridge Apartments Maplewood, Minnesota 96% 99% 1)Average occupancy at Whispering Pines Apartments increased due to rental concessions being offered, as well as the completion of construction that was impeding access to the property. The Partnership's net loss for the three months ended March 31, 1997, was $109,000, versus a net loss of $94,000 for the three months ended March 31, 1996. Although, during the first quarter of 1997, total revenues increased slightly and total expenses decreased slightly, there was an increase in net loss for the period ended March 31, 1997, versus March 31, 1996, as a result of a gain on the sale of North Prior Industrial Park of $64,000, which was recognized during the first quarter of 1996. Rental income increased due to an increase in occupancy at Whispering Pines Apartments. Total expenses decreased as a result of decreases in general and administrative expenses and property tax expense. The decrease in general and administrative expense is due to a decrease in professional fees and the timing of administrative expenses associated with investor correspondence. The decrease in property tax expense is due to a decrease in the tax rate at Silver Ridge Apartments. These decreases were partially offset by an increase in operating expense resulting from concessions being offered at Whispering Pines Apartments, in an effort to increase occupancy. As mentioned previously, the Partnership sold North Prior Industrial Park on June 12, 1995. As a result of the sale, tenant receivable balances were written off due to the doubts regarding the collectibility of such amounts. However, during the three months ended March 31, 1996, $8,000 in receivables were collected and the funds were remitted to AMIT to reduce the principal balance. In addition, during the three months ended March 31, 1996, tenant improvement projects were completed, as required by the sale of the property, and funds remaining in the escrow account were also remitted to AMIT to reduce the principal balance. The funds remitted amounted to $56,000. As a result of these transactions, the Partnership recognized an additional $64,000 gain on the sale of the investment property during the three months ended March 31, 1996. 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, 1997, the Partnership had unrestricted cash and cash equivalents of $583,000 versus $519,000 at March 31, 1996. Net cash provided by operating activities decreased due to a lesser decrease in accounts receivable for the three months ended March 31, 1997, versus the three months ended March 31, 1996. Additionally, as a result of debt that is in default, the Partnership is not servicing this debt on a monthly basis and interest continues to accrue. Net cash provided by investing activities decreased due to increased deposits to restricted escrows and decreased withdrawals from restricted escrows. Cash flows used in financing activities decreased due to decreased principal payments made on mortgage notes payable. For the three months ended March 31, 1996, the Partnership made additional principal payments on the debt to AMIT, which was previously secured by the North Prior Industrial Park. These additional payments were the result of unused funds that were previously held in escrow. The financial statements have been prepared assuming the Partnership will continue as a going concern. The Partnership has incurred recurring operating losses and continues to suffer from inadequate liquidity. In addition, there are limited identified capital resources available to the Partnership. As a result, the Partnership has not had cash available to perform the substantial rehabilitation necessary at each of the investment properties. As mentioned previously, the Partnership is in default on $4,306,000 of debt secured by Whispering Pines Apartments and on $2,887,000 of its indebtedness to AMIT, due to its inability to make interest and principal payments when due. The debt to AMIT is unsecured debt of the Partnership. The Partnership is presently paying non-debt related expenses of the properties and is negotiating forbearance agreements with AMIT on the debt in default. The General Partner anticipates positive cash flow after the payment of operating and capital expenditures for Whispering Pines Apartments for 1997. The General Partner anticipates positive cash flow after the payment of operating and capital expenditures and debt service for Silver Ridge Apartments for 1997. In addition, the General Partner anticipates that the unrestricted cash of $583,000 at March 31, 1997, will be sufficient to cover all Partnership level operating expenditures for the remainder of 1997; however, it does not anticipate paying all AMIT and AAP debt service costs. As a result of the above conditions, there is substantial doubt about the Partnership's ability to continue as a going concern. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability or classification of assets or amounts or classification of liabilities that may result from these uncertainties. 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. The mortgage indebtedness of $13,610,000 consists of, (1) a first mortgage of $4,306,000, which is in default due to its maturity in January 1997 (2) a second trust deed and a working capital loan with principal balances of $375,000 and $1,517,000, respectively and with maturity dates in December and November 1997, respectively; and (3) a first mortgage bond payable in the principal amount of $4,525,000 due July 2023. The Partnership also has unsecured debt to AMIT in the amount of $859,000 and $2,028,000 with maturity dates of June 1997 and June 1996, respectively, which is in default due to non-payment of principal and interest when due. Future cash distributions will depend on the levels of net cash generated from operations, refinancings and property sales. There were no cash distributions during the three months ended March 31, 1997 or March 31, 1996. At this time, the General Partner does not anticipate making a cash distribution during fiscal 1997. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS In January 1993, a local fuel oil distributor pumped fuel oil into a testing well instead of into the storage tank at North Prior Industrial Park. The Partnership notified the necessary authorities and engaged an environmental engineering firm to develop a plan of action to clean up the site. The cost of the clean up, which is not covered by insurance, is estimated to be approximately $900,000 over a five year period. A liability has been recorded to cover the estimated costs to clean up the site and the funds have been set aside in an escrow account. The Partnership entered into an Environmental Undertaking and Indemnity Agreement with the buyer of the property limiting the Partnership's liability with regard to the clean up of this site to the balance of the escrow account. This agreement will terminate when the Partnership receives a "Site Closure Letter" from the Minnesota Pollution and Control Agency. Upon receipt of this letter, any remaining funds in the escrow account will be used to pay down Partnership debt to AMIT. In January 1995, the holder of the first mortgage, along with the former receiver, initiated two separate lawsuits against the Partnership, among others, for damages sustained as a result of the above. In June 1995 the suit with the former holder of the first mortgage was dismissed. During November 1995, the Partnership was removed as the defendant and became the Plaintiff in the lawsuit initiated by the former receiver in a suit filed against the fuel distributor, among others. The former receiver was removed as Plaintiff in the suit due to it no longer being a party- in-interest. A mediation hearing was held in December 1996 in which the defendants have tentatively agreed that the claims may be resolved by payment by the defendants to the Partnership. Settlement documents are under discussion, however a complete settlement of the litigation has not yet been concluded. During the third quarter of 1996, AMIT filed a complaint against the Partnership, in the State of Minnesota, demanding payment on the $2,028,000 obligation plus accrued interest. At March 31, 1997, accrued interest on this debt payable to AMIT totaled $392,000. The debt was in default previously due to non-payment of interest and now is in default due to non-payment upon maturity. AMIT has obtained a judgment against the Partnership, however they have indicated that they will not act on the judgment. The Partnership is unaware of any other pending or outstanding litigation that is not of a routine nature. The General Partner of the Partnership believes that all such pending or outstanding litigation will be resolved without a material adverse effect upon the business, financial condition, or operations of the Partnership. 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 three months ended March 31, 1997. 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 PARTNERS 16 By: Angeles Realty Corporation II General Partner By: /s/Carroll D. Vinson Carroll D. Vinson President By: /s/Robert D. Long Robert D. Long Vice President/CAO Date: May 8, 1997 EX-27 2
5 This schedule contains summary financial information extracted from Angeles Partners 16 1997 First Quarter 10-QSB and is qualified in its entirety by reference to such 10-QSB filing. 0000812187 ANGELES PARTNERS 16 1,000 3-MOS DEC-31-1997 MAR-31-1997 583 0 22 0 0 0 11,765 3,378 10,669 0 13,610 0 0 0 (5,738) 10,669 0 662 0 0 771 0 287 (109) 0 (109) 0 0 0 (109) (7.72) 0 Registrant has an unclassified balance sheet. Multiplier is 1.
-----END PRIVACY-ENHANCED MESSAGE-----