This excerpt taken from the SPPR 8-K filed Nov 12, 2009.
Item 8.01 Other Events.
On November 9, 2009, Supertel Hospitality, Inc. (the “Company”) disclosed in its Form 10-Q for the quarter ended September 30, 2009 that is was negotiating with Wells Fargo Bank to extend the November 12, 2009 maturity date of its $9.0 million note payable to Wells Fargo Bank for an additional six months. On November 12, 2009, the Company amended its note with Wells Fargo Bank. The amendment extends the maturity date of the debt to May 12, 2010. Covenants were also modified. The consolidated loan to value ratio covenant was increased to 70% from 65%. For purposes of the ratio, value will now be attributed to hotels generating negative operating income at 50% of actual costs. Previously, value with respect to those hotels was not included in the ratio calculation. The minimum fixed charge coverage ratio covenant was reduced from 1.30:1 after preferred dividends to (a) 0.90:1 after preferred dividends and (b) 1.00:1 before preferred dividends. The Company also agreed to a minimum liquidity covenant of $500,000. The Company intends to refinance or repay the credit facility with Wells Fargo Bank using other financing, funds from operations or proceeds from the sale of hotels.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Supertel Hospitality, Inc.