Quarterly report pursuant to sections 13 or 15(d)

Notes Payable

Notes Payable

9 Months Ended

Sep. 30, 2011

5.	Notes Payable

	September 30,		December 31,
	2011		2010
11% Note payable to affiliate of the Company’s principal shareholder	$	21,950	$	16,950
Note payable to former Triad shareholders, net of $39 of unamortized discount		—		1,247
(Prime +2%) Notes payable to clearing firm under forgivable loan		7,143		8,571
6.5% Note payable to a subsidiary of Premier’s former shareholder		958		1,111
Total	$	30,051	$	27,879

The Company estimates that the fair value of notes payable was $30,132 at September 30, 2011 and $28,625 at December 31, 2010 based on then current interest rates at which similar amounts of debt could currently be borrowed. As of September 30, 2011, the Company was in compliance with all debt covenants in its debt agreements.

On August 16, 2011, the Company entered into a second amendment to its existing revolving credit facility with an affiliate of the Company’s principal shareholder, under which available borrowings under such facility were increased by $10 million to an aggregate of $40 million. (See Note 11 – Subsequent Events.)

During the third quarter of 2011, $1,429 of principal and $450 of accrued interest under the note payable to clearing firm was forgiven and is included in other income in the accompanying 2011 consolidated statements of operations.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details