RELATED PARTY TRANSACTIONS

3 Months Ended

Jul. 31, 2011

RELATED PARTY TRANSACTIONS [Text Block]

18. RELATED PARTY TRANSACTIONS

    At July 31, 2011, all of Canal’s Long-Term Debt is held by the company’s Chief Executive Officer. These notes which pay interest at a rate of 10% per annum and come due May 15, 2015. Canal has incurred interest expense on these notes of approximately $64,000 and $88,000 for the nine month periods ended July 31, 2011 and 2010, respectively. At various times during period the holder of these notes agrees to defer interest payments. This deferred interest liability accrues additional interest at a rate of 10% per annum, while outstanding and is repaid as funds become available. As of July 31, 2011, the balance due under these notes was $847,000 all of which is classified as long-term debt related party.