Sir Royalty Income Fund SIRZF

RE:RE:RE:Closure of 3 Restaurants...

[jcw604]

This should turn out to be good. See: The COVID-19 pandemic has drastically altered SIR's operating environment and put a great deal of stress on many businesses, including SIR. SIR's landlord presented the Company with an unexpected but mutually beneficial opportunity to vacate these properties as the landlord had a unique opportunity to lease the space to another tenant for a non-restaurant purpose. Given the current operating environment and uncertain future prospects, SIR decided to exercise this option and return the property to the landlord. The net proceeds from the termination agreement will be used to reduce the value of SIR's outstanding revolving loan, and SIR will have no further obligations, including for accrued and unpaid rent as well as future rent, at these closed locations. The landlord basically is paying SIR to get rid of them, replacing them with a new client. Good deal for SIR corp. Speeding up the reinstating of royalty income. The reason why the unit holders are prevented from getting their royalty income is that the other lenders has the priority. Once, they are cleared of their debt or have them brought down to a level within the requirements of the covenant, royalty payments will resume.