3. Capital leases

On March 28, 2013, two of ASC’s subsidiaries entered into an agreement, which took effect on April 2, 2013, for the sale and leaseback under a capital lease arrangement of the Ardmore Calypso and Ardmore Capella. This transaction was treated as a financing transaction. As part of this arrangement, the senior debt previously outstanding on the vessels of $17.9 million was repaid in full on April 2, 2013. The capital leases are scheduled to expire in 2018 and require the Company to repurchase the vessels at a specified price. ASC’s subsidiary ASLLC has provided a guarantee in respect of this financing arrangement.

		As at
		Sep 30, 2015
Current portion of capital lease obligations		1,813,564
Non-current portion of capital lease obligations		25,729,641
Total capital lease obligations		27,543,205

The future minimum lease payments required under the capital leases at September 30, 2015, are as follows:

		As at
		Sep 30, 2015
2015		966,552
2016		3,845,196
2017		3,834,690
2018		23,705,540
Total minimum lease payments		32,351,978
Less amount representing interest		(4,808,773)
Net minimum lease payments		27,543,205

Assets recorded under capital leases and included in Vessels and vessel equipment, net in ASC’s balance sheets consisted of the following at September 30, 2015:

		Total
Vessels and equipment		44,525,446
Accumulated depreciation		(6,827,643)
		37,697,804