The auditing firm J. Scott Magliari & Co. reported that in 2008, CUC’s total liabilities reached over $228.918 million.
“Total liabilities at Sept. 30, 2010, were $58.2 million, an increase of $1.4 million from $56.8 million in 2009, which decreased by $172.1 million (75.2 percent) when compared to Sept. 30, 2008,” the firm said in a report.
“Significant changes include an increase in retirement contributions payable of $1.1 million, an increase in long-term debt of $1.4 million, and a decrease in accounts payable of $1.9 million,” it added.
In 2009, CUC’s liabilities went down to over $56 million.
That year, the Commonwealth Development Authority signed a debt-equity conversion agreement with CUC consenting to convert its $45 million principal debt into preferred stocks.
The agreement also canceled and discharged CUC’s debt to CDA amounting to over $61 million in principal and over $138.7 million in accrued interest, including related late charges and any other charges owed by CUC on the capital development loans.
As stock holder, CDA, the CNMI government’s financial and lending institution, is entitled to collect dividends from CUC starting October next year.
CDA’s 45 shares of preferred stock with a par value of $1 million per share totaling $45 million should earn a fixed annual dividend of 2 percent payable on a quarterly basis, according to another government report.
That 2 percent fixed dividend should give CDA an additional income of $900,000 every year, payable on a quarterly basis.
As of Sept. 30, 2010, CUC’s assets stood at $130.9 million, down by $547,000 compared to 2009.
“Most significant was a decrease in capital assets of $2.6 million, the result of accumulated depreciation increasing by $7.8 million and water plant capital assets increasing $5.1 million. Other changes of note were an increase in deferred fuel costs of $1.4 million, a decrease in accounts and other receivables of $1.5 million and a $1.2 million increase in inventory,” J. Scott Magliari & Co. further reported.
