INTEREST EXPENSE AND RELATED CHARGES



	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014			2013
Interest paid/accrued on debtor-in-possession financing	$	58	$	—		$	66		$	—
Interest paid/accrued on pre-petition debt	—		160			266			470
Interest expense related to pushed down debt	—		1			1			5
Interest expense on pre-petition toggle notes payable in additional principal (Note 7)	—		45			65			130
Amortization of debt exchange premiums	—		(20		)	(24		)	(62		)
Amortization of debt exchange discounts and issuance costs	—		5			7			23
Total interest expense and related charges	$	58	$	191		$	381		$	566

Interest expense for the three and nine months ended September 30, 2014 reflects interest paid and accrued on debtor-in-possession financing (see Note 5).

The Bankruptcy Code generally restricts payment of interest on pre-petition debt, subject to certain exceptions. However, the Bankruptcy Court ordered the payment of post-petition interest payments on EFIH First Lien Notes in connection with the settlement discussed in Note 5. Other than these amounts ordered by the Bankruptcy Court, effective April 29, 2014, EFIH discontinued recording interest expense on outstanding pre-petition debt classified as liabilities subject to compromise (LSTC). Interest expense as calculated under the contractual terms of EFIH's debt, all of which is subject to compromise, would have totaled $248 million for the post-petition period through September 30, 2014. This amount exceeded actual interest expense recorded, which represented $54 million in interest since the Bankruptcy Filing, by $194 million.