9. Convertible Debentures Payable

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Convertible Debentures Payable

In May 2008, LIC, an affiliate of L-PGI, the Company’s preferred shareholder, purchased $703,050 in principal amount of the Company’s convertible debentures from the previous debenture holder.  The balance of the outstanding convertible debentures in the amount of $796,950, are held by Love-1989.  The debentures held by Love-1989 and LIC are secured by a second mortgage behind PGIP on the 366 acres retained by the Company and a security interest behind that held by PGIP in the restricted proceeds escrow.  The total debentures balance of $1,500,000 carry a maturity date of July 8, 1997 and are in default.  Interest on the debentures accrues at the rate of fourteen percent compounded quarterly.  The Company’s primary lender credit agreements prohibit the payment of interest until such time as the primary lender loans are repaid.

Accrued interest was $54,558,000 and $47,351,000 at December 31, 2015 and 2014 respectively.