Debt

During the nine months ended September 30, 2014, the Company negotiated new values for the debt service coverage ratio covenant on its agribusiness loans such that the debt service coverage ratio at September 30, 2014, and at each quarter ending thereafter, will not be less than 1.25 to 1.00. However, at September 30, 2014, the Company breached the debt service coverage ratio primarily due to operating losses reported by Northstar and as a result, the debt is currently in default. The lenders have the option to declare all or any portion of the $88.5 million outstanding principal amounts due and payable and can also demand a deposit as cash collateral of 105% of the unused line of credit; however, to date, the lenders have not made any such declarations or demands. The Company is in discussions with the lenders to cure the default by December 31, 2014, and has no current plans to invest additional capital into the business as a result.

Certain real estate mortgage debts include provisions that require minimum loan-to-value ratios. During the term of the loan, the lender may require the Company to obtain a third-party written appraisal of the underlying real estate collateral. If the appraised fair value of the collateral securing the loan is below the specified minimum, the Company may be required to make principal payments in order to maintain the required loan-to-value ratios. As of September 30, 2014, the lenders have not requested, and the Company has not obtained, any such appraisals.

As of September 30, 2014, the Company had unused lines of credit of approximately $67.3 million in real estate operations and $17.7 million in agribusiness operations.

The following details the Company’s consolidated debt (in thousands):



	September 30, 2014		December 31, 2013
Agribusiness term loan:
4.75% payments through 2017	$	79,058	$	83,533
Agribusiness working capital facility:
6% payments through 2017	9,350		4,750
Other agribusiness debt:
4.99% payments through 2018	135		159
Swiss debt:
3.7% payments through 2014			14,012
3.8% payments through 2014			3,363
Mortgage debt:
3.19% to 4.75% payments through 2016	49,614		17,307
5% to 5.5% payments due from 2014 - 2016	8,134		11,491
6% to 6.5% payments through 2036			548
10% payments through 2017	1,604		1,604
	$	147,895	$	136,767