XML 19 R12.htm IDEA: XBRL DOCUMENT
v3.21.2

Leases | 9 Months Ended
--- | ---
Sep. 30, 2021
Leases |
Finance Leases | ​ ​ 4. Leases ​ As at September 30, 2021, the Company was a party, as the lessee, to seven finance lease facilities. The Company’s applicable ship-owning subsidiaries have granted first-priority mortgages against the relevant vessels in favor of the lenders as security for the Company’s obligations under the finance lease facilities, which totaled 14 vessels as at September 30, 2021. ASC has provided guarantees in respect of the finance lease facilities. These guarantees can be called upon following a payment default. The outstanding principal balances on each finance lease facility as at September 30, 2021 and December 31, 2020 were as follows: ​
​ | ​ | ​ | ​ | ​
​ |  | As at
​ |  | September 30, 2021 |  | December 31, 2020
Japanese Leases No.1 and 2 | ​ | 22,886,900 |  | 26,531,100
Japanese Lease No.3 | ​ | 11,338,000 |  | 13,119,000
CMBFL Leases No.1 to 4 | ​ | 66,992,860 |  | 72,459,942
Ocean Yield ASA | ​ | 51,683,760 | ​ | 55,729,620
Japanese Lease No.4 | ​ | 20,456,241 |  | 21,949,099
China Huarong Leases | ​ | 38,530,125 |  | 41,992,081
CMBFL / Shandong | ​ | 67,060,600 | ​ | —
Finance lease obligations | ​ | 278,948,486 |  | 231,780,842
Amounts representing interest and deferred finance fees | ​ | (47,408,400) |  | (34,076,458)
Finance lease obligations, net of interest and deferred finance fees | ​ | 231,540,086 |  | 197,704,384
Current portion of finance lease obligations | ​ | 21,436,253 |  | 19,084,775
Current portion of deferred finance fees | ​ | (711,305) |  | (630,553)
Non-current portion of finance lease obligations | ​ | 213,207,992 |  | 181,250,674
Non-current portion of deferred finance fees | ​ | (2,392,854) |  | (2,000,512)
Total finance lease obligations, net of deferred finance fees | ​ | 231,540,086 |  | 197,704,384
​ Maturity analysis of the Company’s finance lease facilities for each year are as follows:
​ | ​ | ​
​ | ​ | As at
​ | ​ | September 30, 2021
2021 (1) |  | 8,065,589
2022 |  | 32,164,805
2023 |  | 43,722,900
2024 |  | 29,888,892
2025 |  | 81,557,056
2026 - 2030 |  | 83,549,244
Finance lease obligations |  | 278,948,486
Amounts representing interest and deferred finance fees |  | (47,408,400)
Finance lease obligations, net of interest and deferred finance fees |  | 231,540,086
| (1) | Three-month period ending December 31, 2021
​ 4. Leases (continued) ​ Japanese Leases No. 1 and 2 On May 30, 2017, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Sealeader and Ardmore Sealifter, with JPV No. 7 and JPV No. 8, respectively. The facility was drawn down in May 2017. Repayments on the leases are made on a monthly basis and include principal and interest. The finance leases are scheduled to expire in 2023 and include purchase options exercisable by the Company. As part of the lease arrangement, the Company provided the purchasers with $2.9 million in the aggregate which shall be repaid at the end of the lease period, or upon the exercise of any of the purchase options. This amount is included in the consolidated balance sheets as ‘Amount receivable in respect of finance leases’ with the associated finance lease liability presented gross of the $2.9 million. Japanese Lease No. 3 On January 30, 2018, one of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Sealancer with Neil Co., Ltd. The facility was drawn down in January 2018. Repayments on the lease are made on a monthly basis and include principal and interest. The finance lease is scheduled to expire in 2024 and includes purchase options exercisable by the Company. As part of the lease arrangement, the Company provided the purchaser with $1.4 million in the aggregate which shall be repaid at the end of the lease period, or upon the exercise of any of the purchase options. This amount has been offset against the finance lease liability in the consolidated balance sheets, with the associated finance lease liability presented net of the $1.4 million. CMBFL Leases No. 1 to 4 On June 26, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Endurance and Ardmore Enterprise, respectively, with CMB Financial Leasing Co., Ltd (“CMBFL”). The facility was drawn down in June 2018. Interest is calculated at a rate of LIBOR plus 3.10%. Principal repayments on the leases are made on a quarterly basis. The finance leases are scheduled to expire in 2025 and include a mandatory purchase obligation for the Company to repurchase the vessels, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. On October 25, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Encounter and Ardmore Explorer, respectively, with CMBFL. The facility was drawn down in October 2018. Interest is calculated at a rate of LIBOR plus 3.00%. Principal repayments on the leases are made on a quarterly basis. The finance leases are scheduled to expire in 2025 and include a mandatory purchase obligation for the Company to repurchase the vessels, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. Ocean Yield ASA On October 25, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Dauntless and Ardmore Defender, respectively, with Ocean Yield ASA. The facility was drawn down in October 2018. Interest is calculated at a rate of LIBOR plus 4.50%. Principal repayments on the leases are made on a monthly basis. The finance leases are scheduled to expire in 2030 and include a mandatory purchase obligation for the Company to repurchase the vessels, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. 4. Leases (continued) Japanese Lease No. 4 On November 30, 2018, one of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement), of the Ardmore Engineer with Rich Ocean Shipping. The facility was drawn down in December 2018. Interest is calculated at a rate of LIBOR plus 3.20%. Principal repayments on the lease are made on a monthly basis. The finance lease is scheduled to expire in 2029 and includes a mandatory purchase obligation for the Company to repurchase the vessel, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. China Huarong Leases On November 30, 2018, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement), of the Ardmore Seavanguard and Ardmore Exporter, respectively, with China Huarong Financial Leasing Co., Ltd (“China Huarong”). The facility was drawn down in December 2018. Interest is calculated at a rate of LIBOR plus 3.50%. Principal repayments on the leases are made on a quarterly basis. The finance leases are scheduled to expire in 2025 and include a mandatory purchase obligation for the Company to repurchase the vessels, as well as purchase options exercisable by the Company, which the Company could elect to exercise at an earlier date. CMBFL / Shandong On June 25, 2021, two of ASC’s subsidiaries entered into an agreement for the sale and leaseback (under a finance lease arrangement) of the Ardmore Seawolf and Ardmore Seahawk with CMBFL / Shandong, resulting in gross proceeds of $49.0 million less fess of $1.0 million. The facility was drawn down in June 2021. Principal repayments on the leases are made on a monthly basis. The finance leases are scheduled to expire in 2029 with a firm duration of five years with options to renew for a maximum period of eight years. Repurchase options, exercisable by the Company, are also included which begin on the third anniversary of the lease term. Finance leases financial covenants Some of the Company’s existing finance lease facilities (as described above) include financial covenants which are the same, or no more onerous than, the Company’s long-term debt financial covenants described in Note 3. The Company was in full compliance with all of its finance lease related financial covenants as at September 30, 2021 and December 31, 2020. ​ Short Term Leases The Company has entered into two short term lease agreements with one agreement effective July 23, 2020 to charter-in a 2010 built vessel for a period of 12 months and the other agreement effective June 4, 2021 to charter-in a 2009 built vessel for a period of eight months. The Company elected the practical expedient of FASB Accounting Standards Codification 842, Leases, which allows for time charter-in contracts with an initial lease term of 12 months or less to be excluded from the operating lease right-of-use assets and lease liabilities. The Company will continue to recognize the lease payments for all operating leases as charter hire expenses on the condensed consolidated statements of operations on a straight-line basis over the lease term. ​ ​

X
- References No definition available. + Details
Name: | asc_FinanceLeasesAbstract
Namespace Prefix: | asc_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration