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Note 12 - Financial Covenant Violation
9 Months Ended
Sep. 30, 2012
Debt Covenant Violation [Text Block]
Note 12.  Financial Covenant Violation

Under the Credit Agreement as in effect at September 30, 2012, the Company was required to report adjusted net income each period.  Adjusted net income as defined was required to not be less than $(1,000), $(500) and $1.00 (one dollar), respectively for the quarters ended June 30, 2012, September 30, 2012 and December 31, 2012.  The Credit Agreement defines adjusted net income as net income, adjusted by excluding all cash and non-cash gains, losses, income and expenses related to the following:  (a) Joint Ventures (though cash gains, losses, income and expenses related thereto shall not be excluded), (b) Swap Contracts and hedging activities, (c) corporate reorganization and restructuring activities or subsidiary start-up operations, and (d) the sale, disposition, purchase or acquisition of assets, other than in the ordinary course of business.  The Company’s results for quarter ending September 30, 2012 included material unrealized gains from hedging activities and a non-cash loss from equity method investments.  The Company was not in compliance with its Adjusted Net Income requirement to exceed the $(500) requirement at September 30, 2012.  The Company obtained a waiver from its primary lender for this default.