A portion of the Company’s corporate offices are leased from Allied Pacific Properties and Hotels Ltd. ("APP"), a minority shareholder of the Company. During the six months ended June 30, 2007, the Company paid rent to APP, pursuant to the lease, of which $6,000 (2006 - $8,000) is included in SG&A under the sub-heading of general expenses in the analysis above.
Included in amounts due to related parties is a loan of $5.4 million (2006 - $8.1 million) due to Allied Holdings Ltd ("Holdings"), the Company’s majority shareholder. This loan, which is unsecured and due on demand, bears interest at a fixed rate of 9.0% per annum. During the three and six months ended June 30, 2007 the Company paid interest to Holdings of $119,000 and
$253,000, respectively (2006 - $171,000 and $430,000). These amounts are included in other interest expense.
Included in amounts due to related parties is a loan of $8.2 million (2006 – $6.9 million) due to APP. This loan, which is secured by a general security agreement and due on demand, bears interest at a rate of prime plus 0.75% per annum. During the three and six months ended June 30, 2007, the Company paid interest to APP of $138,000 and $274,000, respectively (2006 - $116,000 and $221,000).
