Subordinated Convertible Debentures Payable

12 Months Ended

Dec. 31, 2022

Subordinated Convertible Debentures Payable

Subordinated Convertible Debentures Payable

7. Subordinated Convertible Debentures Payable:

The Company recognized forgiveness of debt and interest for the remaining outstanding balance of the Subordinated Convertible Debentures with the December 21, 2022 Resolution to cease operations and allow the dissolution and wind up of the affairs of the Company.

The Subordinated Convertibles Debentures forgiveness of debt and interest for the year ended December 31, 2022 consisted of:

	Debt		Interest
	($ in thousands)
6%, due May, 1992	$	8,025	$	30,915

The Company was party to an agreement with Deutsch Bank Trust Company Americas (formerly known as Bankers Trust Company) as trustee pursuant to that certain Indenture dated May 1, 1972 (“the Indenture”), as to which Indenture the Company executed a certain Tolling Agreement dated April 15, 1998 for the purpose of tolling the application of the statute of limitations to said Indenture and the Company thereafter executed twenty-four (24) separate annual amendments to said tolling agreement such that the current Termination Date thereof is May 1, 2023. The Company will not execute any further tolling agreements with regard to the Indenture.

Since issuance, $152,000 of the 6% debentures have been converted into common stock. This conversion feature is no longer in effect.

Accrued interest on the 6% subordinated convertible debentures was $29,512,000 as of December 31, 2021.

The debentures are not collateralized and are subordinate to senior indebtedness ($1,198,000 at December 31, 2021). Payment of dividends on the Company’s common stock is restricted under the terms of the two indentures pursuant to which the outstanding debentures are issued.