ACCOUNTS PAYABLE AND ACCRUED EXPENSES

6 Months Ended

Jun. 30, 2017

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

9. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consist of the following (dollars in thousands):

	June 30,		December 31,
	2017		2016
Accounts payable	$	9,174	$	6,821
Accrued milestone and supervision payments		—		5,368
Accrued operating expenses		14,159		16,990
Accrued administrative expenses		2,378		2,767
Accrued interest		7,162		2,045
Total	$	32,873	$	33,991

Accrued milestones and supervision payments represent the amounts due for construction milestone and supervision installment payments under the contracts for the Acquired VLCC newbuildings. As of June 30, 2017, the Company paid $5.4 million of milestone and supervision installments that were accrued as of December 31, 2016.