Baltia Air Lines Inc. (fka BLTA)

[flaflyersfan]

CCRuzNY, certain;

8. Long-Term Debt - Related Party:
On December 1, 2010, the Company entered into a
loan arrangement with a company owned or
controlled by one of our directors for a total amount
of $1,150,000. The Company issued a note ("Note")
bearing interest at 9% per annum, payable quarterly,
with a maturity date of March 31, 2013. Under terms
of the Note dated December 1, 2010, the Company
was obligated to repay the $1,150,000 prior to the
maturity date upon raising $4 million or from
proceeds of operating revenue. In connection with
the terms of the Note, the Company issued the
lender 6.8 million shares of common stock and 3.4
million warrants. The Company recorded the relative
fair value of the shares and warrants of $294,297 as
additional paid-in capital and established a discount
on the debt. The discount was amortized over 24
months at an effective rate of 14.98%. The note is
secured by aircraft to a limit of $2.9 million.
On March 31, 2013, the repayment terms of the Note
were modified, wherein the Company is obligated to
repay the principal amount of $1,150,000 to the
lender on or before the second anniversary of the
date upon which the Company commences its
revenue flight operations. The modification further
provides that the Company will pay accrued interest
to date on or before the first anniversary of the date
upon which the Company commences its revenue
flight operations. There were no other changes to the
terms of the original note

Will find the link to the March 2013 modification later. Good luck.