|6 Months Ended|
Jun. 30, 2013
|Debt Disclosure [Abstract]|
|Debt Disclosure [Text Block]||
As of June 30, 2013 and December 31, 2012, Merchant Supreme’s short and long-term loans consisted of the following items:
(a) Short-term loans
The principal payments for the outstanding short-term loans are as follows:
Short-term loans of US$1,999,620, US$565,774, US$1,209,915 and US$1,096,065 from Industrial & Commercial Bank of China, Fuzhou Dongjiekou Branch repaid on July 2, July 5, July 18 and August 2, 2013 respectively.
Merchant Supreme has raised short-term loans amounted to US$5,873,210 from Industrial & Commercial Bank of China, Fuzhou Dongjiekou Branch in July 2013 and these amounts will be due in October 2013.
The current portion of the term loans is shown in the table below:
The term loan amounts recorded as non-current as of June 30, 2013 and December 31, 2012 consisted of the following:
Interest expenses of long-term loans for the six months ended June 30, 2013 and 2012 amounted to $834,525 and $151,200, respectively. Interest expenses of long-term loans for the three months ended June 30, 2013 and 2012 amounted to $432,571 and $151,200, respectively. Interest expenses of $25,220 and $83,524 are capitalized to construction in progress both for the three and six months ended June 30, 2013 and 2012, respectively.
A summary of the principal payments for the outstanding term loans during the following three fiscal years is as follows:
In October 2012, Pingtan Fishing entered into two pledge contracts with China Minsheng Banking Corp., Ltd. Pursuant to the terms of the pledge contracts, Pingtan Fishing put 10 fishing vessels, as collateral to secure Hong Long’s long-term loans from the financial institution in amount of approximately $10.6 million, which are due on April 18, 2015. In addition to the collateral provided to Hong Long, Pingtan Fishing also guaranteed the repayment of $45.6 million long-term loans.
As of the date of these financial statements, Pingtan Fishing had not received any demand from the lender to dispose the collateralized properties or to make any payments under the guarantee.
In September 2012, Pingtan Fishing provided certain guarantees to Hong Long for its short-term loans from China CITIC Bank Corporation Limited, in maximum guarantee amount of approximately $24.4 million. The short-term loans are due on September 21, 2013.
In October 2012, Pingtan Fishing provided certain guarantees to Hong Long for its short-term loans from Shanghai Pudong Development Corporation Limited, Fuzhou Branch, in maximum guarantee amount of approximately $8.1 million. The guaranteed short-term loans are due on September 5, 2013.
In December 2012, Pingtan Fishing provided certain guarantees to Shenzhen Western Coast Fisherman Pier Co., Ltd. for its term loans from China Construction Bank, Shenzhen Branch. The guarantee agreement will expire two years after the first drawdown.
In January 2013, Pingtan Fishing provided certain guarantees to Hong Long for its term loans from Industrial and Commercial Bank of China. Fuzhou Jinshan Branch, in maximum guarantee amount of approximately $13.0 million. The loans are due on January 28, 2016.
As of the date of these financial statements, Pingtan Fishing was not required to make any payments under these guarantee agreements.
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
Reference 1: http://www.xbrl.org/2003/role/presentationRef