10 — CONVERTIBLE SENIOR NOTES

The Company issued $125,000 of the 2010 Notes on July 27, 2010. The Indenture for the 2010 Notes includes customary agreements and covenants by the Company, including with respect to events of default. As noted in Note 1 — General Information, the filing of the Chapter 11 Cases by the Company on April 21, 2014 constituted an event of default with respect to the 2010 Notes. On this date, the Company ceased recording interest expense related to the 2010 Notes. During the three and six months ended June 30 2014, interest expense of $2,266, including the amortization of the discount of the liability component and the bond coupon interest expense, was not recorded which would have been incurred had the indebtedness not been reclassified as a Liability subject to compromise. On the Effective Date, when the Company emerged from Chapter 11, the 2010 Notes and the Indenture were fully satisfied and discharged.

The following tables provide additional information about the Company’s 2010 Notes:

	June 30, 2014		December 31, 2013
Carrying amount of the equity component (additional paid-in capital)	$	24,375	$	24,375
Principal amount of the 2010 Notes	125,000		125,000
Unamortized discount of the liability component	7,527		9,119
Net carrying amount of the liability component	117,473		115,881

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2014			2013			2014			2013
Effective interest rate on liability component	10.0		%	10.0		%	10.0		%	10.0		%
Cash interest expense recognized	$	345		$	1,571		$	1,886		$	3,112
Non-cash interest expense recognized	293			1,209			1,592			2,388
Non-cash deferred financing amortization costs included in interest expense	39			179			216			356

Refer to Note 1 — General Information for additional information regarding defaults relating to the 2010 Notes. In accordance with applicable accounting guidance, the liability related to the 2010 Notes was classified as Liabilities subject to compromise in the condensed Consolidated Balance Sheets as of June 30, 2014.