2010 annual report - touax group

Annual report 2010
The security deposits for EIG Modul Finance I EIG were fully
written down for a total of €1.9m at December 31, 2006. As a
result the same amount of commission deferred at the time of
the creation of Modul Finance I EIG (€1.9m), which had been
booked as a non-current liability, was cancelled). Part of the
Group’s deferred income from the EIG was written down by €0.3
million in 2007. In 2009, the Group’s deferred income from the
EIG was once again written down by €1 million.
On January 14, 2011, the companies that are partners in the EIG
agreed to acquire “senior” shares through HPMF. HPMF financed
this acquisition by issuing type A, B and C bonds that will be
subscribed to by HPMC1, Apicius and the TOUAX Group.
➜ note 30.2. Further details regarding
the Trust TCLRT 98
On 16 December 1998, the Group conducted a second asset
backed securitization operation, this time for shipping containers,
in the form of a trust registered in the State of Delaware
(USA), under the name of “TOUAX Container Lease Receivables
Trust TCLRT 98”. This Trust was entirely financed by investors
outside the Group (Indenture Agreement) through the issue of
a senior debt (Senior Notes) and a subordinated debt (certificates)
used to fund the purchase of shipping containers with a
total value of $40.4 million, to be operated and managed by the
Group under a management contract (Sales and Servicing
Agreement) for a minimum of 10 years.
In April 2009, the Trust 1998's assets were sold; 85% (12,006.5
FTEU) and 15% (2,095.5 FTEU) were acquired respectively by
investors and Gold Container Investment Ltd.
Gold Container’s leasing of the Trust’s containers has the following
implications for the Group’s accounts (in thousands of
euros) in 2009 and 2008. There were no longer any containers
belonging to Trust 98 on December 31, 2010:
RECOGNIZED IN THE CONSOLIDATED INCOME STATEMENT 2010 2009 2008
(€ thousands)
Leasing revenues from equipment belonging to Trust 1998 921 2,648
Revenues from equipment sold belonging to Trust 1998 249 947
Recognized in Consolidated Revenues 1,170 3,595
Operational expenditure for equipment belonging to the Trust (1) (448) (357)
Recognized in Consolidated Purchases and Other External Expenses (448) (357)
Distributions to the Trust (2) in respect of leasing income (35) (2,071)
Distributions to the Trust (2) in respect of equipment sold belonging to Trust 1998 (88) (947)
Recognized in Consolidated Leasing Income Due to Investors (123) (3,018)
TOTAL MANAGEMENT COMMISSION DUE TO THE GROUP (3) 599 220
(1) Operational expenditure corresponds to costs of storage, maintenance and repair, payment of the network of agents, and all operating expenses in general which are
contractually deducted from the net income distributable to the Trust.
(2) Distributions to the Trust correspond to the net revenues from operating the containers after deducting Gold Container Corp.’s management fee which totaled €123,000
at December 31, 2009.
(3) The total corresponds to the management commission received by the Group for managing the equipment belonging to Trust 98.
The Group has no other liability towards the Trust other than the value of its assets as described below under “Recognized in the
Consolidated Balance Sheet”.
RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET 2010 2009 2008
(€ thousands)
Deposit (4) 863
Recognized in Consolidated Financial Fixed Assets 863
RECOGNIZED IN CONSOLIDATED ASSETS 863
Leasing income due to the Trust (5) 381
Revenues from total loss due to the Trust 60
Revenues from sales of Trust containers (6) 73
Recognized in Consolidated Operating Liabilities 514
RECOGNIZED IN CONSOLIDATED LIABILITIES 514
As indicated above, the equipment belonging to Trust 98 was sold in April 2009.
(4) The Group obtained a letter of credit in favor of the Trust, for a total of $1.2m, guaranteed by a deposit in a bank account. This letter of credit was repaid to the Group.
The Group also contributed a cash reserve to the Trust of $3,766,000 (undiscounted) made available on a bank account belonging to the Trust. This discounted financial asset
was written down by $1,690,000 at December 31, 2005. The present value of this reserve at December 31, 2006 ($1,679,000) was written down in full. Deferred income included
in the consolidated financial statements under “Other long-term liabilities” was reduced by the same amount.
(5) The leasing income corresponds to the net income still to be paid to the Trust on December 31 each year.
(6) The income from sales of containers corresponds to the proceeds from sales of containers belonging to Trust, which the Group had to transfer to the Trust.
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