In connection with the exchanges and conversions, ARI recorded a loss on early
extinguishment of debt of $2.6 million, which includes fees and accelerated amortization of capitalized costs.
Authoritative accounting principles for debt
extinguishment gains and losses can be traced to the Committee on Accounting Procedure's 1953 Accounting Research Bulletin 43.
documentation, mortgage subordination, and
extinguishment requirements.
The loss on
extinguishment of debt for the second quarter of 2017 of USD 2.7 million related to the remaining deferred financing charges on the 7.125% fixed rate notes that were redeemed during the quarter.
Intelsat reported EBITDA gain on early
extinguishment of debt, taxes and depreciation and amortization, of USD 398.1m and adjusted EBITDA of USD 409.8 million, or 76 percent of revenue for the three months ended March 31, 2017.
In conjunction, XOMA funded this
extinguishment using, in part, proceeds of the approximately USD25m equity offering to Biotechnology Value Fund LP.
The deal results in the
extinguishment of USD1.45bn in second lien debt, a new equity investment of USD365m, and an amended RBL credit facility with a USD600m borrowing base.
* Charity Must be Entitled to
Extinguishment Proceeds Without Diversion of Proceeds to the Taxpayer.
A feature of Debt Lookup SM, the Account
Extinguishment Report, provides critical data which can be used to stop collection activity involving settled, cancelled or closed accounts.
In connection with the transaction, FLY anticipates recording USD3 million in non-cash charges relating to debt modification and
extinguishment costs.
But the bottom line also included tax implications from the debt
extinguishment. Last year Ingles booked tax credits that lowered its effective income tax rate for the year to 20.8%, compared with a rate of 35.5% for fiscal 2014.
Net income attributable to the company was $2.3 million, which includes a $42.1 million loss on
extinguishment of debt, versus net income of $59.0 million in the prior year period.
This year's second quarter results include a charge of $6.2 million related to the estimated costs to close the Toledo, Ohio, Retail Support Center (RSC), while last year's second quarter results included a charge of $19.9 million related to a loss on the early
extinguishment of debt.
