Note 6. Long-Term Debt

Long-term debt is comprised of the following:

	June 30,		December 31,
	2014		2013
Obligations under borrowing arrangements	$	100,477	$	77,817
Less: Current portion of long-term debt and other current borrowings		54,973		29,720
Long-term debt	$	45,504	$	48,097

At June 30, 2014, the Company owed approximately $100,477 under its various borrowing arrangements with several banks in Colombia and Panama including obligations under various capital leases as discussed below. The bank obligations have maturities ranging from six months to 10 years that bear interest at rates ranging from 5.6% to 10.2%. These loans are generally secured by substantially all of the Company’s accounts receivable and/or inventory. Certain obligations include covenants and events of default including requirements that the Company maintain a minimum debt to EBITDA ratio, a minimum debt service ratio, total debt to total assets ratio and sales growth ratios.

As of June 30, 2014, the Company was not in compliance with certain financial covenants for its financial obligations with Banco Colpatria. In April 2014, the bank confirmed with the Company it would take no actions to accelerate payments, increase interest, or take any other actions as a result of the non-compliance with the covenants against the Company and is currently working with the Company to redefine such financial covenants to better reflect the operations of the Company. As of the date of the fling of these condensed consolidated unaudited financial statements as of and for the period ended June 30, 2014, the April 2014 confirmation by Colpatria continues in force with no change to the bank’s statements expressed therein.

The Company has approximately $2.3 million available in two lines of credit under a revolving note arrangement as of June 30, 2014. The Revolving Notes expired and were renewed on April 3, 2014. The floating interest rates on the revolving notes are between DTF+4.6% and DTF+5.2%. DTF is the primary measure of interest rates in Colombia. The note is secured by all assets of the Company. At June 30, 2014 and December 31, 2013, $1,498 and $1,872 was outstanding under these lines, respectively.

Interest expense for the three month periods ended June 30, 2014 and 2013 was $ 1.6 million and $ 0.8 million, respectively, and for the six month periods ended June 30, 2014 and 2013 was $3.6 million and $ 2.5 million, respectively.