9. Convertible Debentures Payable

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

Convertible Debentures Payable

After repayment of the first mortgage note (“the primary lender debt”), proceeds received from the June 2016 Property sale to Florida DOT were also utilized to repay the remaining principal of the collateralized convertible debentures totaling $1,500,000 and a portion of the accrued interest related to such debentures totaling $5,455,000. The current holders of the collateralized convertible debentures were LIC and Love-1989 Florida Partners, LP (“Love-1989”), each affiliates of Love-PGI Partners, L.P. (“L-PGI”).

The June 23, 2016 payments of principal and interest and the remaining accrued interest were as follows:

	June 23, 2016		June 23, 2016		Remaining
	Principal		Interest		Accrued
	Payment		Payment		Interest
	($ in thousands)
Credit agreements - first mortgage note	$	500	$	470	$	-
payable-related party
Collateralized convertible debentures
payable-related party		1,500		5,455		52,915
	$	2,000	$	5,925	$	52,915

Accrued interest was $52,915,000 at December 31, 2017 and 2016, respectively.

In May 2008, LIC purchased $703,000 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 $797,000, were held by Love-1989. The debentures held by Love-1989 and LIC were 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 carried a maturity date of July 8, 1997 and were in default as of December 31, 2015. Interest on the debentures accrued 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.