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SUBSEQUENT EVENTS
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12 Months Ended |
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Dec. 31, 2013
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| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENTS |
SUBSEQUENT EVENTS
On February 15, 2014, the Company’s partner in Aeróleo signed purchase agreements to transfer its 50% economic interest and 80% voting interest in Aeróleo to a third party who will become the Company’s new local partner in Aeróleo. In addition, the Company’s current partner in Aeróleo will transfer all outstanding shareholder loans and other equity interests in the Company’s affiliates to the Company and its new partner upon consummation of the transaction. Upon consummation of the transaction, as consideration for the transfer of interests and the other terms and conditions of the transaction, affiliates of the Company’s local partner will receive certain payments from Aeróleo as severance and partial repayment of shareholder loans. Such payments are likely to require a capital infusion from the Company to Aeróleo of approximately $2.0 million. The transaction remains subject to customary closing conditions, including receipt of required local regulatory approval, and is expected to close in the second half of 2014. On February 19, 2014, in connection with execution of the purchase agreements, the Company filed with its partner a joint motion to dismiss the ongoing arbitration.
In connection with the consummation of the transactions contemplated by the purchase agreements, the Company intends to enter into a shareholders agreement with the new partner providing for certain protective provisions requiring unanimous shareholder approval of specified significant actions and a put/call arrangement which would give the Company the right to purchase (or permit a purchaser designee to purchase) the Aeróleo interests held by the Company’s new partner in Aeróleo and give the new partner in Aeróleo the right to put his interests to the Company at any time and for any reason. The put/call price is the greater of the book value of the shares and the original purchase price therefor.
As a result of the transaction and the contemplated arrangements between the Company and its new partner in Aeróleo, the Company may be required to consolidate the financial results of Aeróleo in its financial statements following the consummation of the transactions.
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