Note 9 - Liabilities

3 Months Ended

Mar. 31, 2013

Other Liabilities Disclosure [Text Block]

9.     Liabilities

The Company’s “Accrued and other liabilities” as of March 31, 2013 and December 31, 2012 were as follows:

	March 31, 2013		December 31, 2012
	(in thousands)
Tax-related	$	1,237	$	1,197
Accrued compensation and related taxes		3,003		3,424
Deferred revenue		2,196		299
Insurance		2,225		-
Professional services		431		282
Accrued fuel and rig-related charges		204		162
Other		815		739
	$	10,111	$	6,103

The Company’s “Other long-term liabilities” as of March 31, 2013 and December 31, 2012 were as follows:

	March 31, 2013		December 31, 2012
	(in thousands)
Tax-related	$	7,340	$	7,340
Phantom stock liability		2,072		1,798
Deferred compensation		288		234
Other		53		-
	$	9,753	$	9,372

The tax-related long-term liabilities relate primarily to FASB Interpretation No. 48 uncertainties primarily associated with our foreign subsidiaries. Through one of its Steel Energy acquisitions, the Company has a phantom stock plan agreement (the “Phantom Plan”), in which the board of directors is authorized to grant phantom shares to employees and consultants. The value of the phantom shares outstanding was fixed as a result of the acquisition. If employees or consultants terminate from the Company other than by death or disability, their unvested shares are returned to the Phantom Plan. Phantom stockholders are entitled to receive a cash payment for their vested shares on February 1, 2016, unless there is a change of control or employee death. The Company is accounting for the unvested portion of the Phantom Plan as post-combination compensation expense by accreting a liability over the vesting period.

A Steel Energy company has a credit agreement with Wells Fargo Bank, National Association, that included a term loan of $20.0 million and a revolving line of credit for up to $5.0 million. The loans are secured by the assets of the Steel Energy company and bear interest, at the option of the Company, at LIBOR plus 3.5% or the greater of (a) the bank’s prime rate, (b) the Federal Funds Rate plus 1.5%, or (c) the Daily One-Month LIBOR rate plus 1.5% for base rate loans. Both interest rate options are subject to leverage ratio adjustments. There was an original $20.0 million borrowed on the term loan in July 2011, which was paid in full as of March 31, 2013. Borrowings under the revolving loan, which are determined based on eligible accounts receivable, mature on June 30, 2015 with a balloon payment. There is no balance due on the revolving loan as of March 31, 2013. Under the agreement, the Steel Energy company is subject to certain financial covenants, with which it was in compliance as of March 31, 2013.