7. Credit Agreements, Notes Payable, Subordinated and Convertible Debentures Payable

3 Months Ended

Mar. 31, 2017

Credit Agreements Notes Payable Subordinated And Convertible Debentures Payable

Credit Agreements, Notes Payable, Subordinated and Convertible Debentures Payable

Credit agreements and notes payable consisted of the following:

	March 31,		December 31,
	2017		2016
	($ in thousands)
Notes payable - $1,176,000 bearing interest at prime plus 2%, the remainder non-interest bearing, all past due		1,198		1,198
Subordinated convertible debentures payable:
At 6-1/2% interest; due June 1, 1991		447		447
At 6% interest; due May 1, 1992		8,025		8,025
		8,472		8,472
	$	9,670	$	9,670

The Trustee of the 6.5% unsecured subordinated convertible debentures, which matured in June, 1991, with an original face amount of $1,034,000, provided notice of final distribution to holders of such debentures on September 2, 2014. In connection with such final distributions, the Trustee has maintained a debenture reserve fund with a balance of $41,000 as of March 31, 2017 and December 31, 2016, available for final distribution to holders of such debentures who surrender their respective debenture certificates.

During the three month period ended March 31, 2017 and during the year ended December 31, 2016, there were no unsecured subordinated convertible debentures that were surrendered by their respective debenture holders and no funds were utilized from the debenture reserve account.

As of March 31, 2017 and December 31, 2016 the outstanding principal balance on such 6.5% unsecured subordinated convertible debentures that were not surrendered by the respective holders equals $447,000 plus accrued and unpaid interest of $824,000 and $817,000, respectively. If and when such remaining debentures are surrendered to the Trustee, the applicable portion of such principal and accrued interest will similarly be recorded as debt and accrued interest forgiveness. As the Company has consistently stated in prior filings, the Company believes that any potential claims by the respective debenture holders on such 6.5% unsecured subordinated convertible debentures would be barred under the applicable statutes of limitations.