XML 16 R9.htm IDEA: XBRL DOCUMENT v3.5.0.2

Sale of vessels previously held under Capital Leases

6 Months Ended

Jun. 30, 2016

Leases, Capital [Abstract]

Capital leases

3. Sale of vessels previously held under 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 outstanding on the vessels of $17.9 million was repaid in full on April 2, 2013. The capital leases were scheduled to expire in 2018 and included a mandatory purchase obligation for the seller to repurchase the vessels, as well as a purchase option exercisable by Ardmore.

In October 2015, Ardmore agreed terms for the sale of the Ardmore Calypso and Ardmore Capella. Effective November 2015, Ardmore reclassified these vessels as Vessels Held for Sale and ceased to depreciate the vessels. Ardmore exercised the purchase option for the two vessels during the second quarter of 2016 and repaid all amounts outstanding under the capital lease. The en bloc sale price for the two vessels was $38.5 million, resulting in an overall net gain of $0.5 million when Ardmore delivered the vessels to the buyers during April and May of 2016.

The gain on disposal of the vessels for the six months ended June 30, 2016 is calculated as follows:

		Calypso			Capella			Total
Sales proceeds			19,150,000			19,350,000			38,500,000
Net book value of vessels			(18,783,238)			(18,253,669)			(37,036,907)
Sale related costs			(273,458)			(228,210)			(501,668)
Lease Termination Costs and Related Finance Fees			(254,731)			(254,732)			(509,463)
Net (Loss) / Gain			(161,427)			613,389			451,962

		As at
		Jun 30, 2016			Dec 31, 2015
Current portion of capital lease obligations			-			27,097,348
Current portion of deferred finance fees			-			(325,437)
Total capital lease obligations			-			26,771,911

Assets recorded under capital leases were included in vessels held for sale and consisted of the following at December 31, 2015 and June 30, 2016:

		As at
		Jun 30, 2016			Dec 31, 2015
Vessels held for sale			-			37,083,985
			-			37,083,985

X

- Definition

The entire disclosure for capital leasing arrangements including, but not limited to, the following: a) the basis on which contingent rental payments are determined; (b) the existence and terms of renewal or purchase options and escalation clauses; (c) restrictions imposed by lease agreements, such as those concerning dividends, additional debt, and further leasing.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6455398&loc=d3e45280-112737

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 840
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6452660&loc=d3e36991-112694

+ Details

Name:	us-gaap_CapitalLeasesInFinancialStatementsOfLesseeDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_LeasesCapitalAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration