15 - DEFERRED FINANCING COSTS

Deferred financing costs include fees, commissions and legal expenses associated with securing revolving-debt facilities and other debt offerings and amending existing revolving-debt facilities. These costs are amortized over the life of the related debt and are included in interest expense. Refer to Note 9 — Debt for further information regarding the existing revolving facilities. Upon the refinancing of prior credit facilities with the $400 Million Credit Facility on November 15, 2016, the Company no longer had any revolving-debt facilities. As such, there were no net deferred financing costs as of December 31, 2016.

Total net deferred financing costs consist of the following as of December 31, 2016 and 2015:


	Successor		Successor
	December 31,		December 31,
	2016		2015

2015 Revolving Credit Facility	$	—	$	1,254
$148 Million Credit Facility		—		2,774
Total deferred financing costs		—		4,028
Less: accumulated amortization		—		734
Total	$	—	$	3,294

During the three months ended March 31, 2016, the Company adopted ASU 2015-03 (refer to Note 2 — Summary of Significant Accounting Policies) which requires debt issuance costs related to a recognized debt liability to be presented on the Consolidated Balance Sheets as a direct deduction from the debt liability rather than as a deferred financing cost assets. The Company applied this guidance for all of its credit facilities with the exception of the 2015 Revolving Credit Facility and the revolving credit facility portion of the $148 Million Credit Facility at December 31, 2015, which represent revolving credit agreements which are not addressed in ASU 2015-03. Accordingly, the Company reclassified $11,357 and $9,411 of deferred financing costs from Deferred financing costs, net to Long-term debt and the Current portion of long-term debt as of December 31, 2016 and 2015, respectively. Refer to Note 9 — Debt for further information.

Amortization expense for deferred financing costs for the Successor Company, including the deferred financing costs recognized net of the outstanding debt, for the years ended December 31, 2016 and 2015 and for the period from July 9 to December 31, 2014 was $2,847, $2,379 and $845, respectively. Amortization expense for deferred financing costs for the Predecessor Company for the period from January 1 to July 9, 2014 was $4,461. This amortization expense is recorded as a component of Interest expense in the Consolidated Statements of Operations.

On November 15, 2016, the unamortized deferred financing costs for the Prior Facilities that were refinanced with the $400 Million Credit Facility are going to be amortized over the life of the $400 Million Credit Facility (Refer to 9 — Debt).

On the Effective Date, the Company eliminated the net unamortized deferred financing costs for the 2007 Credit Facility and the 2010 Notes and classified the changes as Restructuring items, net in the Consolidated Statements of Operation for the Predecessor Company as both the 2007 Credit Facility and 2010 Notes were terminated as part of the Plan. Additionally, the unamortized deferred financing costs for the $100 Million Term Loan Facility and the $253 Million Term Loan Facility prior to their Restatements and Amendment pursuant to the Plan were eliminated and the Company classified the changes to Restructuring items, net in the Consolidated Statements of Operation for the Predecessor Company. Fees and legal expenses for securing the Amended and Restated $100 Million and $253 Million Term Loan Facilities have been capitalized as deferred financing costs and were amortized over the extended term of the respective loans until these facilities were refinanced with the $400 Million Credit Facility as noted above (Refer to Note 9 — Debt).

Baltic Trading entered into the $148 Million Credit Facility on December 31, 2014, which was used to refinance the outstanding indebtedness under the 2010 Credit Facility. As such, beginning on December 31, 2014, the net unamortized deferred financing costs associated with the 2010 Baltic Trading Credit Facility were amortized over the life of the $148 Million Credit Facility, until it was refinanced with the $400 Million Credit Facility as noted above (Refer to Note 9 — Debt).