Note 5 - Notes Receivable - Related Party

3 Months Ended

Mar. 31, 2013

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

(5)           NOTES RECEIVABLE – RELATED PARTY

In March 2013, we entered into a new loan agreement (the “Global 2013 Note”) with Global to refinance the outstanding $5 million Global Note Receivable and the $12 million Global Loan into one $17 million note. The Global 2013 Note extended the maturity date to June 15, 2015 and increased the interest rate from 12.5% to 12.75%. Principal payments will be made quarterly, and began with the first payment of $500 thousand on March 31, 2013. Accrued interest on the outstanding principal balance is due on each quarterly principal payment date. Payment of the Global 2013 Note is guaranteed by Global’s principal operating subsidiary. In connection with the new loan agreement, Global paid us a transaction fee of $340 thousand, of which $334 thousand was deferred and presented net of our long term notes receivable at March 31, 2013. The remaining deferred transaction fee will be recognized over the life of the loan. Additionally, we recognized $86 thousand of unamortized origination fees related to the old loans. The remaining payments due to us under the new Global 2013 Note are as follows: $1.5 million due quarterly from June 30, 2013 through March 31, 2015 and $4.5 million due June 15, 2015.

Currently, our related party loans are classified as long-term due to the historic uncertainty around the timing of collection in spite of the stated repayment terms in the agreements.  As a related party, it is in our best interest to work with Global on payment terms to maximize our return on this investment.  We assess the collectability of our related party loan with Global on a semi-annual basis based on review of their publically disclosed financial information.  Additionally, we continually monitor all Global disclosures for any events that could adversely affect their liquidity or results of operations.  As of the date of this quarterly report on Form 10-Q we do not have any reason to believe that our Global 2013 Note is not collectible or is impaired.  Accordingly, we did not record any allowance for doubtful accounts related to our related party notes receivable at March 31, 2013.