10. Capital leases

On March 28, 2013 two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a capital lease arrangement) of the Ardmore Calypso and Ardmore Capella . The capital lease arrangement was executed on April 2, 2013. This transaction is treated as a financing transaction. As part of this arrangement the senior debt outstanding on the vessels was repaid in full on April 2, 2013. The amount repaid was $17.9 million. The capital lease is scheduled to expire in 2018 and includes a mandatory purchase obligation to repurchase the vessels. ASC’s subsidiary, Ardmore Shipholding Limited, has provided a guarantee in respect of this financing arrangement.


	As at
	Dec 31,2013
Current portion of capital lease obligations		1,578,686
Non-current portion of capital lease obligations		28,800,329

Total capital lease obligations		30,379,015

The future minimum lease payments required under the capital leases at December 31, 2013, are as follows:


	As at
	Dec 31,2013
2014		3,834,690
2015		3,834,690
2016		3,845,196
2017		3,834,690
2018		23,705,540

Total minimum lease payments		39,054,806
Less amount representing interest		(8,675,791	)

Net minimum lease payments		30,379,015

Assets recorded under capital leases and included in vessels and vessel equipment, net consist of the following at December 31, 2013:


	As at
	Dec 31,2013
Vessels and equipment		41,326,198
Accumulated depreciation		(4,009,872	)

		37,316,326