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

6 Months Ended

Jun. 30, 2020

Debt Disclosure [Abstract]

Credit Agreements, Notes Payable, Subordinated and Convertible Debentures Payable

Credit agreements consisted of the following:

	June 30,		December 31,
	2020		2019
	($ 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 6.5% interest; due June 1991		138		138
At 6% interest; due May 1992		8,025		8,025
		8,163		8,163
	$	9,361	$	9,361

The Trustee of the 6.5% 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 distribution, the Trustee maintains a debenture reserve fund with a balance of $13,000 as of June 30, 2020 and December 31, 2019, available for final distribution of $92 per $1,000 in face amount to holders of such debentures who surrender their respective debenture certificates.

During the six month periods ended June 30, 2020 and 2019, there were no 6.5% subordinated convertible debentures that were surrendered or escheated by their respective debenture holders and no funds were utilized from the debenture reserve account.

As of June 30, 2020 and December 31, 2019, the outstanding principal balance on such 6.5% subordinated convertible debentures that were not surrendered by the respective holders, or escheated by the Trustee to the states of residence of the respective holders, equals $138,000 plus accrued and unpaid interest of $284,000 and $279,000, respectively. If and when such remaining debentures are surrendered to the Trustee, or escheated to the states of residence of the respective debenture holders, the applicable portion of such principal and accrued interest will 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% subordinated convertible debentures would be barred under the applicable statutes of limitations.