FORM 10-QSB--QUARTERLY OR TRANSITIONAL 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
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 2001
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the transition period from ________________ to ________________
Commission file number 0-13261
SHELTER PROPERTIES VI
(Exact name of small business issuer as specified in its charter)
South Carolina 57-0755618
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
55 Beattie Place, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices)
(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)
SHELTER PROPERTIES VI
BALANCE SHEET
(Unaudited)
(in thousands, except per unit data)
March 31, 2001
Assets
Cash and cash equivalents $ 1,176
Receivables and deposits 131
Restricted escrows 833
Other assets 393
Investment properties:
Land $ 3,759
Buildings and related personal property 40,551
44,310
Less accumulated depreciation (24,993) 19,317
$ 21,850
Liabilities and Partners' Deficit
Liabilities
Accounts payable $ 109
Tenant security deposit liabilities 165
Accrued property taxes 469
Other liabilities 389
Mortgage notes payable 21,574
Partners' Deficit
General partners $ (256)
Limited partners (42,324 units issued and
outstanding) (600) (856)
$ 21,850
See Accompanying Notes to Financial Statements
b)
SHELTER PROPERTIES VI
STATEMENTS OF OPERATIONS
(Unaudited)
(in thousands, except unit data)
Three Months Ended
March 31,
2001 2000
Revenues:
Rental income $2,043 $2,597
Other income 245 174
Total revenues 2,288 2,771
Expenses:
Operating 760 1,148
General and administrative 110 108
Depreciation 444 613
Interest 474 598
Property taxes 208 285
Total expenses 1,996 2,752
Net income $ 292 $ 19
Net income allocated to general partners (1%) $ 3 $ --
Net income allocated to limited partners (99%) 289 19
$ 292 $ 19
Net income per limited partnership unit $ 6.83 $ .45
Distributions per limited partnership unit $50.35 $10.02
See Accompanying Notes to Financial Statements
c)
SHELTER PROPERTIES VI
STATEMENT OF CHANGES IN PARTNERS' (DEFICIT) CAPITAL
(Unaudited)
(in thousands, except unit data)
Limited
Partnership General Limited
Units Partners Partners Total
Original capital contributions 42,324 $ 2 $42,324 $42,326
Partners' (deficit) capital at
December 31, 2000 42,324 $ (246) $ 1,242 $ 996
Distributions to partners -- (13) (2,131) (2,144)
Net income for the three months
ended March 31, 2001 -- 3 289 292
Partners' (deficit) capital at
March 31, 2001 42,324 $ (256) $ (600) $ (856)
See Accompanying Notes to Financial Statements
d)
SHELTER PROPERTIES VI
STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Three Months Ended
March 31,
2001 2000
Cash flows from operating activities:
Net income $ 292 $ 19
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation 444 613
Amortization of discounts and loan costs 55 100
Change in accounts:
Receivables and deposits 540 391
Other assets (110) (45)
Accounts payable (51) (70)
Tenant security deposit liabilities -- (4)
Accrued property taxes (85) 54
Other liabilities (197) (28)
Net cash provided by operating activities 888 1,030
Cash flows from investing activities:
Property improvements and replacements (388) (142)
Net withdrawals from (deposits to) restricted escrows 238 (341)
Net cash used in investing activities (150) (483)
Cash flows from financing activities:
Payments on mortgage notes payable (198) (241)
Distribution paid to partners (2,144) (428)
Net cash used in financing activities (2,342) (669)
Net decrease in cash and cash equivalents (1,604) (122)
Cash and cash equivalents at beginning of period 2,780 2,901
Cash and cash equivalents at end of period $ 1,176 $ 2,779
Supplemental disclosure of cash flow information:
Cash paid for interest $ 392 $ 498
Supplemental disclosure of non-cash flow information:
At December 31, 2000 accounts payable and fixed assets were adjusted $265,000
for non-cash activity.
See Accompanying Notes to Financial Statements
e)
SHELTER PROPERTIES VI
NOTES TO FINANCIAL STATEMENTS
(Unaudited)
Note A - Basis of Presentation
The accompanying unaudited financial statements of Shelter Properties VI (the
"Partnership" or "Registrant") 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. The general
partner responsible for management of the Partnership's business is Shelter
Realty VI Corporation ("the Corporate General Partner"). The Corporate General
Partner is a subsidiary of Apartment Investment and Management Company
("AIMCO"). In the opinion of the Corporate 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, 2001, are not necessarily indicative of the results that may be
expected for the fiscal year ending December 31, 2001. For further information,
refer to the financial statements and footnotes thereto included in the
Partnership's Annual Report on Form 10-KSB for the year ended December 31, 2000.
Segment Reporting: Statement of Financial Standards ("SFAS") No. 131,
"Disclosure about Segments of an Enterprise and Related Information" established
standards for the way that public business enterprises report information about
operating segments in annual financial statements and requires that those
enterprises report selected information about operating segments in interim
financial reports. It also establishes standards for related disclosures about
products and services, geographic areas, and major customers. As defined in SFAS
No. 131, the Partnership has only one reportable segment. The Corporate General
Partner believes that segment-based disclosures will not result in a more
meaningful presentation than the consolidated financial statements as currently
presented.
Note B - Reconciliation of Cash Flows
The following is a reconciliation of the subtotal on the accompanying statements
of cash flows captioned "net cash provided by operating activities" to "net cash
provided by operations", as defined in the partnership agreement of the
Partnership (the "Partnership Agreement"). However, "net cash used in
operations" should not be considered an alternative to net income as an
indicator of the Partnership's operating performance or to cash flows as a
measure of liquidity.
Three Months Ended
March 31,
2001 2000
(in thousands)
Net cash provided by operating activities $ 888 $ 1,030
Payments on mortgage notes payable (198) (241)
Property improvements and replacements (388) (142)
Change in restricted escrows, net 238 (341)
Changes in reserves for net operating
liabilities (97) (298)
Change in additional reserves 474 (8)
Net cash provided by operations $ 917 $ --
During the three months ended March 31, 2001, the Corporate General Partner
released previously reserved funds of approximately $474,000. The Corporate
General Partner reserved approximately $8,000 at March 31, 2000 to fund capital
improvements and repairs at its investment properties.
Note C - Transactions with Affiliated Parties
The Partnership has no employees and is dependent on the Corporate General
Partner and its affiliates for the management and administration of all
Partnership activities. The Partnership Agreement provides for (i) certain
payments to affiliates for services and (ii) reimbursement of certain expenses
incurred by affiliates on behalf of the Partnership. The following transactions
with the Corporate General Partner and/or its affiliates were incurred for each
of the three months ended March 31, 2001 and 2000:
2001 2000
(in thousands)
Property management fees (included in
operating expenses) $115 $140
Reimbursement for services of affiliates
(included in general and administrative
expenses and investment properties) 77 45
During the three months ended March 31, 2001 and 2000, affiliates of the
Corporate General Partner were entitled to receive 5% of gross receipts from all
of the Registrant's properties as compensation for providing property management
services. The Registrant paid to such affiliates approximately $115,000 and
$140,000 for the three months ended March 31, 2001 and 2000, respectively.
Affiliates of the Corporate General Partner received reimbursements of
accountable administrative expenses amounting to approximately $77,000 and
$45,000 for the three months ended March 31, 2001 and 2000, respectively.
In addition to its indirect ownership of the general partner interest in the
Partnership, AIMCO and its affiliates owned 26,626 limited partnership units in
the Partnership representing approximately 62.91% of the outstanding units at
March 31, 2001. A number of these units were acquired pursuant to tender offers
made by AIMCO or its affiliates. It is possible that AIMCO or its affiliates
will acquire additional limited partnership interests in the Partnership for
cash or in exchange for units in the operating partnership of AIMCO either
through private purchases or tender offers. Under the Partnership Agreement,
unitholders holding a majority of the Units are entitled to take action with
respect to a variety of matters, which would include without limitation, voting
on certain amendments to the Partnership Agreement and voting to remove the
Corporate General Partner. As a result of its ownership of approximately 62.91%
of the outstanding units, AIMCO is in a position to influence all voting
decisions with respect to the Registrant. When voting on matters, AIMCO would in
all likelihood vote the Units it acquired in a manner favorable to the interest
of the Corporate General Partner because of their affiliation with the Corporate
General Partner.
Note D - Distributions
During the three months ended March 31, 2001, the Partnership declared and paid
approximately $1,305,000 (approximately $1,292,000 to the limited partners,
$30.53 per limited partnership unit) from cash from operations and approximately
$839,000 (approximately $19.82 per limited partnership unit) all to the limited
partners from the sale proceeds of Foxfire/Barcelona Apartments during November
2000. During the three months ended March 31, 2000, the Partnership paid a
distribution of approximately $428,000 (approximately $424,000 to the limited
partners, $10.02 per limited partnership unit) from cash from operations.
Subsequent to March 31, 2001, the Partnership declared and paid a distribution
of approximately $917,000 (approximately $398,000 all to the limited partners,
$9.40 per limited partnership unit) from sales proceeds of Foxfire/Barcelona
Apartments and approximately $519,000 (approximately $514,000 to the limited
partners or $12.14 per limited partnership unit) from cash from operations.
Note E - Change in Accounting Estimate
During the first quarter 2001, certain accruals of approximately $132,000
established related to the sale of Foxfire/Barcelona Apartments in November 2000
were reversed due to actual costs being less than anticipated. This accrual
reversal is included as a reduction of operating expenses in the three month
period ended March 31, 2001.
Note F - Legal Proceedings
In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia
Financial Group, Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs named as defendants, among others,
the Partnership, its Corporate General Partner and several of their affiliated
partnerships and corporate entities. The action purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships (including the Partnership) which are named as nominal
defendants, challenging, among other things, the acquisition of interests in
certain general partner entities by Insignia Financial Group, Inc. ("Insignia")
and entities which were, at one time, affiliates of Insignia; past tender offers
by the Insignia affiliates to acquire limited partnership units; management of
the partnerships by the Insignia affiliates; and the Insignia Merger. The
plaintiffs seek monetary damages and equitable relief, including judicial
dissolution of the Partnership. On June 25, 1998, the Corporate General Partner
filed a motion seeking dismissal of the action. In lieu of responding to the
motion, the plaintiffs filed an amended complaint. The Corporate General Partner
filed demurrers to the amended complaint which were heard February 1999.
Pending the ruling on such demurrers, settlement negotiations commenced. On
November 2, 1999, the parties executed and filed a Stipulation of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the settlement was obtained on November 3, 1999 from the Court, at which time
the Court set a final approval hearing for December 10, 1999. Prior to the
December 10, 1999 hearing, the Court received various objections to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement. On
December 14, 1999, the Corporate General Partner and its affiliates terminated
the proposed settlement. In February 2000, counsel for some of the named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated the settlement. On June 27, 2000, the Court entered an order
disqualifying them from the case and an appeal was taken from the order on
October 5, 2000. On December 4, 2000, the Court appointed the law firm of Lieff
Cabraser Heimann & Bernstein LLP as new lead counsel for plaintiffs and the
putative class. Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001, the Corporate General Partner and its affiliates filed a
demurrer to the third amended complaint. The demurrer is scheduled to be heard
on May 14, 2001. The Court has also scheduled a hearing on a motion for class
certification for August 27, 2001. Plaintiffs must file their motion for class
certification no later than June 15, 2001. The Corporate General Partner does
not anticipate that costs associated with this case will be material to the
Partnership's overall operations.
The Partnership is unaware of any other pending or outstanding litigation that
is not of a routine nature arising in the ordinary course of business.
Item 2. Management's Discussion and Analysis or Plan of Operation
The matters discussed in this Form 10-QSB contain certain forward-looking
statements and involve risks and uncertainties (including changing market
conditions, competitive and regulatory matters, etc.) detailed in the
disclosures contained in this Form 10-QSB and the other filings with the
Securities and Exchange Commission made by the Registrant from time to time. The
discussion of the Registrant's business and results of operations, including
forward-looking statements pertaining to such matters, does not take into
account the effects of any changes to the Registrant's business and results of
operations. Accordingly, actual results could differ materially from those
projected in the forward-looking statements as a result of a number of factors,
including those identified herein.
The Partnership's investment properties consist of five apartment complexes. The
following table sets forth the average occupancy of the properties for each of
the three months ended March 31, 2001 and 2000:
Average
Occupancy
Property 2001 2000
Rocky Creek Apartments
Augusta, Georgia 97% 92%
Carriage House Apartments
Gastonia, North Carolina 86% 93%
Nottingham Square Apartments
Des Moines, Iowa 94% 97%
River Reach Apartments
Jacksonville, Florida 97% 95%
Village Gardens Apartments
Fort Collins, Colorado 95% 95%
The increase in average occupancy at Rocky Creek Apartments is attributed to a
more aggressive marketing campaign. The decrease in average occupancy at
Carriage House Apartments and Nottingham Square Apartments is due to a change in
demographics of the market areas in which the investment properties compete and
lower interest rates for home buyers.
Results of Operations
The Partnership had a net income of approximately $292,000 for the three months
ended March 31, 2001, versus net income of approximately $19,000 for the three
months ended March 31, 2000. The increase in net income is due to a decrease in
total expenses, partially offset by an decrease in total revenues. The decrease
in both total expenses and total revenues is largely due to the sale of
Foxfire/Barcelona Apartments during November 2000. Excluding the impact of the
operations of Foxfire/Barcelona Apartments, the Partnership had net income of
approximately $159,000 for the three months ended March 31, 2001, versus net
income of approximately $39,000 for the three months ended March 31, 2000. The
increase in net income is primarily due to the reversal of the reserve
established with the sale of Foxfire/Barcelona Apartments which was less than
anticipated expenses. The increase in net income is also due to an increase in
total revenues which more than offset a small increase in total expenses. Total
revenues for the Partnership's remaining properties increased due to an increase
in rental income and other income. Rental income increased due to an increase in
average rental rates at all five of the Registrant's remaining properties, which
more than offset the decrease in occupancy at Carriage House Apartments and
Nottingham Square Apartments. Other income increased primarily due to an
increase in tenant reimbursements being charged at the investment properties and
an increase in interest income as a result of higher average cash balances being
maintained in interest bearing accounts.
Total expenses on the remaining properties increased primarily due to an
increase in operating expenses. Operating expense increased as a result of an
increase in property expenses which more than offset a decrease in maintenance
expense. Property expenses increased due to an increase in utilities expenses at
the Partnership's investment properties. General and administrative expenses
remained relatively constant for the comparative period. Included in general and
administrative expenses at both March 31, 2000 and 2000, are reimbursements to
the Corporate General Partner allowed under the Partnership Agreement associated
with the quarterly and annual communications with investors and regulatory
agencies and the annual audit and appraisals required by the Partnership
Agreement are also included.
As part of the ongoing business plan of the Partnership, the Corporate 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 Corporate 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 Corporate General Partner will be able to sustain
such a plan.
Liquidity and Capital Resources
At March 31, 2001, the Partnership had cash and cash equivalents of
approximately $1,176,000 as compared to approximately $2,779,000 at March 31,
2000. Cash and cash equivalents decreased approximately $1,604,000 for the three
months ended March 31, 2001 from the Partnership's year end of December 31,
2000. The decrease was due to approximately $2,342,000 of cash used in financing
activities and approximately $150,000 of cash used in investing activities,
which was partially offset by approximately $888,000 of cash provided by
operating activities. Cash used in financing activities consisted primarily of
distributions to partners, and to a lesser extent, payments of principal on the
mortgages encumbering the Partnership's properties. Cash used in investing
activities consisted of property improvements and replacements which were
partially offset by withdrawals from restricted escrows maintained by the
mortgage lender. The Registrant invests its working capital reserves in interest
bearing accounts.
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 investment properties to adequately maintain the
physical assets and other operating needs of the Partnership and to comply with
Federal, state, local, legal, and regulatory requirements. Capital improvements
planned for each of the Registrant's properties are detailed below.
Rocky Creek Apartments
During the three months ended March 31, 2001, the Partnership expended
approximately $25,000 for capital improvements at Rocky Creek Apartments
primarily consisting of floor covering replacements and plumbing enhancements.
The improvements were funded from Partnership operating cash flow. Capital
improvements of approximately $36,000 have been budgeted for 2001 which include,
but are not limited to plumbing enhancements and floor covering and appliance
replacements.
Carriage House Apartments
During the three months ended March 31, 2001, the Partnership expended
approximately $38,000 for capital improvements at Carriage House Apartments
primarily consisting of floor covering replacements and interior decoration.
These improvements were funded from Partnership operating cash flow. Capital
improvements of approximately $64,000 have been budgeted for 2001 which include,
but are not limited to floor covering replacements, HVAC unit upgrades, and
interior decoration.
Nottingham Square Apartments
During the three months ended March 31, 2001, the Partnership expended
approximately $34,000 for capital improvements at Nottingham Square Apartments
primarily consisting of floor covering replacements. These improvements were
funded from Partnership operating cash flow. Capital improvements of
approximately $513,000 have been budgeted for 2001 which include, but are not
limited to floor covering replacements, HVAC unit upgrades and exterior
painting.
River Reach Apartments
During the three months ended March 31, 2001, the Partnership expended
approximately $22,000 for capital improvements at River Reach Apartments
primarily consisting of floor covering and appliance replacements. These
improvements were funded from Partnership operating cash. Capital improvements
of approximately $839,000 have been budgeted for 2001 which include, but are not
limited to floor covering and appliance replacements, interior decoration and
HVAC unit upgrades.
Village Gardens Apartments
During the three months ended March 31, 2001, the Partnership expended
approximately $4,000 for capital improvements at Village Gardens Apartments
primarily consisting of floor covering replacements. These improvements were
funded from Partnership operating cash and reserves. Capital improvements of
approximately $62,000 have been budgeted for 2001 which include, but are not
limited to floor covering and appliance replacements, electrical improvements,
and water heater replacements.
The additional capital expenditures will be incurred only if cash is available
from operations and Partnership reserves. To the extent that such budgeted
capital improvements are completed, the Registrant's distributable cash flow, if
any, may be adversely affected at least in the short term.
The Partnership's current assets are thought to be sufficient for any near term
needs (exclusive of capital improvements) of the Partnership. The mortgage
indebtedness of approximately $21,574,000, net of discounts, has maturity dates
ranging from November 2002 to January 2021. The Corporate General Partner will
attempt to refinance such indebtedness and/or sell the properties prior to such
maturity date. If the properties cannot be refinanced or sold for a sufficient
amount, the Partnership will risk losing such properties through foreclosure.
During the three months ended March 31, 2001, the Partnership declared and paid
approximately $1,305,000 (approximately $1,292,000 to the limited partners,
$30.53 per limited partnership unit) from cash from operations and approximately
$839,000 (approximately $19.82 per limited partnership unit) all to the limited
partners from the sale proceeds of Foxfire/Barcelona Apartments during November
2000. During the three months ended March 31, 2000, the Partnership paid a
distribution of approximately $428,000 (approximately $424,000 to the limited
partners, $10.02 per limited partnership unit) from cash from operations.
Subsequent to the three months ending March 31, 2001, the Partnership declared
and paid a distribution of approximately $917,000 (approximately $398,000 to the
limited partners, $9.40 per limited partnership unit) from sales proceeds of
Foxfire/Barcelona Apartments and approximately $519,000 (approximately $514,000
to the limited partners or $12.14 per limited partnership unit) from cash from
operations. Future cash distributions will depend on the levels of net cash
generated from operations, the availability of cash reserves, and the timing of
debt maturities, refinancings, and/or property sales. The Partnership's
distribution policy is reviewed on a monthly basis. In addition, the Partnership
is restricted from making distributions if the amount in the reserve account for
each property maintained by the mortgage lender for four of the five remaining
properties is less than $400 per apartment unit at each property. At March 31,
2001, the reserve account was adequately funded with a balance of approximately
$809,000. There can be no assurance, however, that the Partnership will generate
sufficient funds from operations, after required capital improvements, to permit
further distributions to its partners during the remainder of 2001 or subsequent
periods.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
In March 1998, several putative unit holders of limited partnership units of the
Partnership commenced an action entitled Rosalie Nuanes, et al. v. Insignia
Financial Group, Inc., et al. in the Superior Court of the State of California
for the County of San Mateo. The plaintiffs named as defendants, among others,
the Partnership, its Corporate General Partner and several of their affiliated
partnerships and corporate entities. The action purports to assert claims on
behalf of a class of limited partners and derivatively on behalf of a number of
limited partnerships (including the Partnership) which are named as nominal
defendants, challenging, among other things, the acquisition of interests in
certain general partner entities by Insignia Financial Group, Inc. ("Insignia")
and entities which were, at one time, affiliates of Insignia; past tender offers
by the Insignia affiliates to acquire limited partnership units; management of
the partnerships by the Insignia affiliates; and the Insignia Merger. The
plaintiffs seek monetary damages and equitable relief, including judicial
dissolution of the Partnership. On June 25, 1998, the Corporate General Partner
filed a motion seeking dismissal of the action. In lieu of responding to the
motion, the plaintiffs filed an amended complaint. The Corporate General Partner
filed demurrers to the amended complaint which were heard February 1999.
Pending the ruling on such demurrers, settlement negotiations commenced. On
November 2, 1999, the parties executed and filed a Stipulation of Settlement,
settling claims, subject to court approval, on behalf of the Partnership and all
limited partners who owned units as of November 3, 1999. Preliminary approval of
the settlement was obtained on November 3, 1999 from the Court, at which time
the Court set a final approval hearing for December 10, 1999. Prior to the
December 10, 1999 hearing, the Court received various objections to the
settlement, including a challenge to the Court's preliminary approval based upon
the alleged lack of authority of prior lead counsel to enter the settlement. On
December 14, 1999, the Corporate General Partner and its affiliates terminated
the proposed settlement. In February 2000, counsel for some of the named
plaintiffs filed a motion to disqualify plaintiff's lead and liaison counsel who
negotiated the settlement. On June 27, 2000, the Court entered an order
disqualifying them from the case and an appeal was taken from the order on
October 5, 2000. On December 4, 2000, the Court appointed the law firm of Lieff
Cabraser Heimann & Bernstein LLP as new lead counsel for plaintiffs and the
putative class. Plaintiffs filed a third amended complaint on January 19, 2001.
On March 2, 2001, the Corporate General Partner and its affiliates filed a
demurrer to the third amended complaint. The demurrer is scheduled to be heard
on May 14, 2001. The Court has also scheduled a hearing on a motion for class
certification for August 27, 2001. Plaintiffs must file their motion for class
certification no later than June 15, 2001. The Corporate General Partner does
not anticipate that costs associated with this case will be material to the
Partnership's overall operations.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) Exhibits:
None.
b) Reports on Form 8-K filed:
None.
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.
SHELTER PROPERTIES VI
By: Shelter Realty VI Corporation
Corporate General Partner
By: /s/Patrick J. Foye
Patrick J. Foye
Executive Vice President
By: /s/Martha L. Long
Martha L. Long
Senior Vice President
and Controller
Date: May 9, 2001