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Subsequent Events
6 Months Ended
Jun. 30, 2014
Subsequent Events [Abstract]  
Subsequent Events
Subsequent Events
We perform review procedures for subsequent events, and determine any necessary disclosures that arise from such evaluation, up to the date of issuance of our annual and interim reports.
In the second quarter of 2014, our Brazilian location was approved for a special term low interest rate governmental loan intended to promote innovation and research and development spending in Brazil, in the amount of 82.5 million Brazilian Reals, provided that our subsidiary spends 34.5 million Reals of its own resources on the financed projects. We expect to receive the first installment of the loan in the amount of 27.0 million Reals during the third quarter of 2014, and the remaining amount in two equal installments during the following two years. The loans mature in 2023. During the second quarter of 2014, we had to place collateral of $6.2 million for this loan, which is recorded as "Restricted cash and cash equivalents" on our Consolidated Balance Sheets.
On July 31, 2014, Tecumseh Europe SA was served a writ (on the merits) before the Commercial court of La Roche-sur-Yon by the five companies of the Atlantic Industrie SAS group. The dispute alleges product failures associated with the supply by Tecumseh Europe of evaporating units mounted on Atlantic's thermodynamic water heaters pursuant to a November 2009 purchase agreement. The writ seeks the payment of 16,715,109 Euros as damages on the grounds of our failure to satisfy our obligation of information, hidden defects, lack of conformity and breach of the purchase agreement. We have informed our insurance company that we intend to utilize our coverage for this dispute if we are ultimately liable for any or all of Atlantic's claim. Under our insurance coverage, we are responsible for the first 60,000 Euros, with our insurance covering up to the next 3.5 million Euros. We intend to firmly and vigorously contest Atlantic's claim.