Debt

12 Months Ended

Dec. 31, 2013

Debt [Text Block]

Note 7 - Debt

Short-term loans at December 31, 2013 and December 31, 2012 consisted of the following:

		2013		2012
From March 16, 2012 to February 18, 2013, with interest of 8.53% at December 31, 2012, collateralized by equipment	$	-	$	1,585,000
From June 19, 2012 to June 19, 2013, with interest of 8.20% at December 31, 2012, collateralized by equipment		-		2,377,500
From June 8, 2012 to June 7, 2013, with interest of 7.26% at December 31, 2012, collateralized by equipment		-		4,279,500
Various bank acceptance bills payable on various dates through June 10, 2013		-		3,758,527
From December 21, 2012 to June 21, 2013, with interest of 6.16% at December 31, 2012, collateralized by a building and equipment		-		792,500
From September 10, 2012 to March 10, 2013, with interest of 6.16% at December 31, 2012,collateralized by a building and equipment		-		697,400
From September 10, 2012 to March 10, 2013, with interest of 6.16% at December 31, 2012, collateralized by a building and equipment		-		792,500
From November 27, 2012 to May 27, 2103, with various interest rates averaging 6.70%, collateralized by a letter of credit		-		2,121,188
From May 31, 2013 to May 31, 2014, with interest of 6.6% at December 31, 2013, collateralized by a building and equipment		6,548,000		-
From September 18, 2013 to September 17, 2014, with interest of 6.6% at December 31, 2013, collateralized by a building and equipment		2,455,500		-
From September 25, 2013 to September 24, 2014, with interest of 6.6% at December 31, 2013, collateralized by a building and equipment		4,092,500		-
From December 9, 2013 to June 9, 2014, with interest of 6.6% at December 31, 2013, collateralized by a building and equipment		1,637,000		-
From November 27, 2013 to November 27, 2014, with interest of 6.6% at December 31, 2013, collateralized by a building and equipment		3,274,000		-
From December 12, 2013 to December 12, 2014, with interest of 7.5% at December 31, 2013, collateralized by a building and equipment		4,583,600		-
From November 27, 2013 to November 27, 2014, with interest of 6.6% at December 31, 2013, collateralized by a building and equipment		842,400		-
From November 27, 2013 to November 27, 2014, with interest of 6.6% at December 31, 2013, collateralized by a building and equipment		1,473,300		-
Various bank acceptance bills and note payable that are payable on various dates through May 11, 2014		3,956,494		-
	$	28,862,794	$	16,404,115

Long-term loans at December 31, 2013 and 2012 consisted of the following:

		2013		2012
From January 24, 2011 to January 24, 2018, with interest of 6.60%, collateralized by buildings and land use rights	$	982,200	$	2,536,000
From February 10, 2011 to February 10, 2018, with interest of 6.60%, collateralized by buildings and land use rights		2,946,600		2,853,000
From February 16, 2011 to February 16, 2018, with interest of 6.60%, collateralized by buildings and land use rights		2,373,650		2,298,250
From February 17, 2011 to February 17, 2018, with interest of 6.60%, collateralized by buildings and land use rights		1,293,230		1,252,150
From March 25, 2011 to March 25, 2018, with interest of 6.60%, collateralized by buildings and land use rights		441,990		427,950
From November 30, 2011 to November 30, 2018, with interest of 6.60%, collateralized by buildings and land use rights		163,700		158,500
From December 23, 2011 to December 23, 2018, with interest of 6.60%, collateralized by buildings and land use rights		523,840		507,200
From March 19, 2012 to January 18, 2018, with interest of 6.60%, collateralized by buildings and land use rights		1,096,790		1,061,950
	$	9,822,000	$	11,095,000

Aggregate future maturities of long-term loans at December 31, 2013 are as follows:

Year Ending December 31,
2014	$	-
2015		-
2016		-
2017		-
2018		9,822,000
	$	9,822,000

The weighted average interest rate on long-term loans is 6.60% .

On August 2, 2010, Hainan Shiner entered into a credit facility with the Hainan Branch of the Bank of China. It is a secured revolving credit facility of RMB70 million (or $11.1 million based on the exchange rate on December 31, 2010) for seven years. Under the credit facility, Hainan Shiner may only use the loan proceeds to improve the technology of its BOPP film and to purchase certain equipment necessary for the improvement. Proceeds under the facility not used for these purposes would be subject to a misappropriation penalty interest rate that is 100% of the current interest rate on the loan.

The initial interest rate on each withdrawal from the facility will be the 5 -year benchmark lending rate announced by the People’s Bank of China on the date of such withdrawal, and is subject to adjustment every 12 months based upon the benchmark. Additional interest will be paid on an overdue loan under this credit facility of 50% of the current interest rate on the loan. Hainan Shiner and certain of its affiliates, including the Company, have provided guarantees and certain land, buildings, and property as collateral under this facility.

The credit facility includes covenants that prohibit Hainan Shiner from making distributions to the Company, its sole shareholder, if (a) its after-tax net income for the fiscal year is zero or negative, (b) its after-tax net income is insufficient to make up its accumulated loss, (c) its income before tax is not utilized in paying off the capital, interest and expense of the lender, or (d) its income before tax is insufficient to pay the capital, interest and expense of the lender.

As of December 31, 2013, the Company drew down the entire RMB70 million credit facility.