XML 56 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note Receivable
3 Months Ended
Mar. 23, 2012
Accounts and Notes Receivable, Net [Abstract]  
Note Receivable
Note Receivable

We own the $69.0 million senior mortgage loan secured by the 443-room Allerton Hotel in Chicago, Illinois. The Allerton loan matured in January 2010 and is currently in default. The Allerton loan accrues at an interest rate of LIBOR plus 692 basis points, which includes 5 percentage points of default interest. As of March 23, 2012, the Allerton loan had a principal balance of $69.0 million and unrecorded accrued interest (including default interest) of approximately $4.7 million. Foreclosure proceedings were initially filed in April 2010 and in May 2011, the borrower filed for bankruptcy. We continue to pursue our rights in the bankruptcy proceedings, but the outcome is uncertain.

Recognition of interest income on the Allerton loan is dependent upon having a reasonable expectation about the timing and amount of cash payments expected to be collected from the borrower. Due to the uncertainty surrounding the timing and amount of cash payments expected, we placed the Allerton loan on non-accrual status. As of March 23, 2012, we have received default interest payments from the borrower of approximately $5.8 million. We did not receive any default interest payments during the first fiscal quarter of 2012. These payments have been recorded as a reduction of our basis in the Allerton loan. We evaluate the potential impairment of the carrying value of the Allerton loan based on the underlying value of the hotel and as of March 23, 2012, there was no impairment.