BANK OVERDRAFTS AND LONG-TERM DEBT

9 Months Ended

Sep. 30, 2014

Bank Overdrafts and Long Term Debt [Abstract]

Bank Overdrafts and Long Term Debt [Text Block]

NOTE 7. BANK OVERDRAFTS AND LONG-TERM DEBT

Amounts of financial debt (related to continuing operations) due to non-related parties are:

€’000

Mortgage & Capital Leases

	September 30, 2014		December 31, 2013
Mortgage loan on property	€	21,470	€	21,084
Leases		26,159		26,412
Total	€	47,629	€	47,496

	September 30, 2014		December 31, 2013
Current portion of debt	€	11,687	€	10,915
Long term debt		35,942		36,581
Total	€	47,629	€	47,496

BANK OVERDRAFT

The following tables sets out the main terms and conditions and the outstanding overdraft balances as of September 30, 2014 and December 31, 2013 of the financial debts referred to continuing operations:

€’000

Outstanding

balance as of

Company

Type of debt

Object

Collateral

September 30, 2014

Dec. 31, 2013

CONTE ROSSO & PARTNERS, S.R.L.

BANK OVERDRAFT

Cash facility

TERME DI GALZIGNANO, S.r.l.

BANK OVERDRAFT

Cash facility

1,039

963

TOTAL

1,039

963

Outstanding non-current loansrelated to continuing operations
as of September 30, 2014 and December 31, 2013

€’000

Outstanding.

Outstanding

balance as of September

balance as of Dec.

Company

Type of debt

Object

Collateral

30, 2014

31, 2013

CONTE ROSSO & PARTNERS, S.R.L.

UNSECURED LOAN

Cash facility

492

507

ARAL IMMOBILIARE, S.r.l.

CAPITAL LEASE

Building purchase

Hotel property in Rome, Italy

26,159

26,279

ARAL IMMOBILIARE, S.r.l.

MORTGAGE LOAN

Building purchase

Building, Porto Cervo (Olbia), Italy

308

TERME DI GALZIGNANO, S.r.l.

MORTGAGE LOAN

Building purchase

Hotel property in Galzignano (Padova), Italy

14,843

TERME DI GALZIGNANO, S.r.l.

MORTGAGE LOAN ("bullet" reimbursement plan)

Cash facility

Hotel property in Galzignano (Padova), Italy

6,135

5,559

TOTAL

47,629

47,496

The following table sets out the significant term and future payments of long-term loans related to continuing operations:

				€’000
				Installments maturity as of September 30
Company	Type of debt	Object	Collateral	2015		2016		2017		2018		2019
CONTE ROSSO & PARTNERS, S.R.L.	UNSECURED LOAN	Cash facility	-		468		24		-		-

ARAL IMMOBILIARE, S.r.l.	CAPITAL LEASE	Building purchase	Hotel property in Rome, Italy		1,275		671		702		734		767
TERME DI GALZIGNANO, S.r.l.	MORTGAGE LOAN	Building purchase	Hotel property in Galzignano (Padova), Italy		3,809		1,379		1,379		1,379		1,379
TERME DI GALZIGNANO, S.r.l.	MORTGAGE LOAN ("bullet" reimbursement plan)	Cash facility	Hotel property in Galzignano (Padova), Italy		6,135
			TOTAL	€	11,687	€	2,074	€	2,081	€	2,113	€	2,146

The following table sets out the amounts of the assets held and used by capital lease:

	Asset Balances at		Asset Balances at
Class of property	September 30, 2014		December 31, 2013
Building	€	38,730	€	38,730
Less: accumulated depreciation		(7,504)		(6,633)
Net balance	€	31,226	€	32,097

The following table sets out the schedule of the undiscounted and discounted future minimum lease payments:

Minimum lease payments (future and net present value)
Twelve months ending September 30:		€’000
2015		2,396
2016		1,763
2017		1,763
2018		1,763
2019		1,763
Later years		17,418
Purchase option		11,522
Net minimum lease payments		38,387
Less: Amount representing interest		(12,228)
Present value of net minimum lease payments	€	26,159

As of September 30, 2014, there are no unused credit lines.

SOUTHERN STATES SIGN Co 10-Q