Annual report pursuant to section 13 and 15(d)

LONG TERM DEBT (Tables)

v2.4.0.8
LONG TERM DEBT (Tables)
 12 Months Ended
Dec. 31, 2012
LONG-TERM DEBT [Abstract]  
Long-term Debt Instruments
Long-term debt consists of the following at December 31, 2012 and December 31, 2011:

(Amounts in Thousands)
  
December 31, 2012
    
December 31, 2011
  
Revolving Credit facility dated October 31, 2011, borrowings based upon eligible accounts receivable, subject to monthly borrowing base calculation, variable interest paid monthly at option of prime rate (3.25% at December, 2012) plus 2.0% or London InterBank Offer Rate ("LIBOR") plus 3.0%, balance due October 31, 2016. Effective interest rate for 2012 and 2011 was 3.8% and 4.4%, respectively. (1) (2)
 
$
—
    
$
—
  
Term Loan dated October 31, 2011, payable in equal monthly installments of principal of $190, balance due in October 31, 2016, variable interest paid monthly at option of prime rate plus 2.5% or LIBOR plus 3.5%. Effective interest rate for 2012 and 2011 was 3.9% and 4.2%, respectively. (1) (2)
   
13,524
      
15,810
  
Promissory Note dated April 18, 2011, payable in monthly installments of principal of $83 starting May 8, 2011, balance due April 8, 2012, variable interest paid monthly at LIBOR plus 4.5%, with LIBOR at least 1.5%.(3) (4) (5)
   
—
      
318
  
Promissory Note dated September 28, 2010, payable in 36 monthly equal installments of $40, which includes interest and principal, beginning October 15, 2010, interest accrues at annual rate of 6.0% (5)
   
352
      
798
  
Promissory Note dated October 31, 2011, payable in monthly installments of $76, which includes interest and principal, starting November 15, 2011, interest accrues at annual rate of 6.0%, balance due May 15, 2014. (5) (6)
   
—
      
636
  
Various capital lease and promissory note obligations, payable 2013 to 2014, interest at rates ranging from 5.2% to 8.0%.(7)
   
391
      
259
  
 
    
14,267
      
17,821
  
Less current portion of long-term debt
    
2,794
      
3,521
  
Less long-term debt related to assets held for sale
    
71
      
105
  
 
  
$
11,402
    
$
14,195
  

(1) Our Revolving Credit facility is collateralized by our accounts receivable and our Term Loan is collateralized by our property, plant, and equipment.

(2) On October 31, 2011, the Company entered into an "Amended and Restated Revolving Credit, Term Loan and Security Agreement" with PNC Bank. Under the original credit facility with PNC dated December 22, 2000, as amended, variable interest was determined based on the options as noted; however, variable interest under the LIBOR option provided for a minimum floor base of 1.0% for both our Revolving Credit and Term Loan from January 1, 2011 to October 30, 2011.

(3) Original promissory note dated May 8, 2009 of $3,000,000 was modified on April 18, 2011, with principal balance of approximately $990,000. See "Promissory Notes and Installment Agreements" below for terms of original and amended promissory notes and the final payment made on the note.

(4) Net of debt discount of ($0) and ($117,000) for December 31, 2012 and December 31, 2011, respectively. See "Promissory Notes and Installment Agreements" below for additional information.

(5) Uncollateralized note.

(6) Promissory note entered into in connection with acquisition of SEC on October 31, 2011. See "Promissory Notes and Installment Agreements" below for cancellation and termination of the October 31. 2011 note in connection with settlement with TNC regarding certain claims that the Company asserted against TNC subsequent to the acquisition of SEC on October 31, 2011.

(7) Includes the $230,000 New Note issued to TNC on February 12, 2013 as discussed in Note 3 - "Business Combination." This note was issued to replace the remaining balance of $1,460,000 of the $2,500,000 October Note issued on October 31, 2012 in connection with the acquisition of SEC. The remaining balance of the $1,460,000 October Note was cancelled and terminated on February 12, 2013, in connection with settlement with TNC regarding certain claims that the Company asserted against TNC subsequent to the acquisition of SEC on October 31, 2011.
Schedule of long-term debt maturing in future years
The following table approximates amount of the maturities of long-term debt maturing in future years as of December 31, 2012 of our continuing operations (in thousands):

Year ending December 31:
      
2013
  
$
2,794
  
2014
    
2,440
  
2015
    
2,296
  
2016
    
6,666
  
Total
  
$
14,196
  

Future maturities of the capital leases
The following table lists future maturities of the capital leases as of December 31, 2012 of our continuing operations (in thousands):

  
Captial Leases
  
Year ending December 31:
      
2013
  
$
53
  
2014
    
37
  
2015
    
―
  
2016
    
―
  
2017
    
―
  
Total Minimum Lease Payments
    
90
  
Less amount representing interest (effective interest rate of 6.50%)
    
(5
)
Less estimated executory costs
    
―
  
Net minimum lease payments
    
85
  
Less current installments of obligations under capital leases
    
53
  
Obligations under capital leases excluding current installments
  
$
32