FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2011

FAIR VALUE OF FINANCIAL INSTRUMENTS [Text Block]

22. FAIR VALUE OF FINANCIAL INSTRUMENTS

Disclosures about fair value of financial instruments for the Company’s financial instruments are presented in the table below. These calculations are subjective in nature and involve uncertainties and significant matters of judgment and do not include income tax considerations. Therefore, the results may not be indicative of the amounts realized in actual sale or settlement of the instruments. There may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used could significantly affect the results.

The following table presents a summary of the Company’s financial instruments as of December 31, 2011:

		Carrying		Estimated Fair
		Amount		Value
Financial Assets:
Cash and cash equivalents	$	118,058	$	118,058
Accounts receivable		345,382		345,382
Restricted marketable securities		686,476		686,476
Financial Liabilities:
Derivative instruments		54,896		54,896
Accounts payable		4,163,041		***
Accrued expenses		1,316,074		***
Accrued interest		4,933,337		***
Copper derivatives settlement payable		16,106,691		***
Current maturity of long-term debt		6,190,999		***
Senior long-term debt		23,257,826		***

The carrying amounts for cash and cash equivalents, accounts receivable and restricted marketable securities approximate fair value because of the short maturities of these financial instruments. As noted above, the Company’s derivatives are carried on the consolidated balance sheet at estimated fair value and include a credit risk valuation adjustment of $1,694 which was based upon the Company’s current default rate of interest of 9.06% above LIBOR on its senior long-term debt.

*** Given the current situation with the Company’s senior lender and the related default of the underlying Credit Agreement, as amended, the Company does not believe that an estimate of the fair value of its senior long-term debt can be made without incurring substantial time and resources. Accordingly, an estimate of the fair value of its senior long-term debt as of December 31, 2011 is considered impracticable. In addition, due the current situation with the Company’s senior lender and the impact this situation may have on the remaining liabilities of the Company, an estimate of the fair value of accounts payable, accrued expenses, accrued interest, copper derivatives settlement payable and long-term debt as of December 31, 2011 is also considered impracticable.