California Petroleum Transport 10-Q 13 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 13, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'CALIFORNIA PETROLEUM TRANSPORT CORPORATION	'
Entity Central Index Key	'0000923649	'
Current Fiscal Year End Date	'--12-31	'
Entity Well-known Seasoned Issuer	'No	'
Entity Voluntary Filers	'No	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Non-accelerated Filer	'
Document Fiscal Year Focus	'2014	'
Entity Common Stock, Shares Outstanding	'	1,000
Document Fiscal Period Focus	'Q3	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-14	'

Unaudited_Balance_Sheets

Unaudited Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$1	$1
Current portion of Term Loans	9,525	9,526
Interest receivable	406	406
Other current assets	15	15
Total current assets	9,947	9,948
Term Loans, less current portion	0	9,426
Deferred charges	0	99
Total assets	9,947	19,473
Current liabilities:	'	'
Accrued interest	406	406
Current portion of Term Notes	9,525	9,526
Other current liabilities	15	15
Total current liabilities	9,946	9,947
Term Notes, less current portion	0	9,525
Total liabilities	9,946	19,472
Equity	'	'
Share capital	1	1
Total liabilities and equity	$9,947	$19,473

Unaudited_Statements_of_Operat

Unaudited Statements of Operations and Retained Earnings (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenue	'	'	'	'
Interest income	$260	$427	$911	$1,483
Expenses reimbursed	5	3	13	12
Net operating revenues	265	430	924	1,495
Expenses	'	'	'	'
Administrative expenses	-5	-3	-13	-12
Amortization of debt issue costs	-57	-21	-99	-63
Interest expense	-203	-406	-812	-1,420
Total operating expenses	-265	-430	-924	-1,495
Net income	0	0	0	0
Retained earnings, beginning of period	0	0	0	0
Retained earnings, end of period	$0	$0	$0	$0

Unaudited_Statements_of_Cash_F

Unaudited Statements of Cash Flows (USD $)	9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013
Statement of Cash Flows [Abstract]	'	'
Net income	$0	$0
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Amortization of deferred debt issue costs	99	63
Amortization of issue discount on loan receivable	-99	-63
Changes in operating assets and liabilities:	'	'
Interest receivable	0	203
Other current assets	0	11
Accrued interest	0	-203
Other current liabilities	0	-11
Net cash provided by operating activities	0	0
Cash flows from investing activities	'	'
Collections on Term Loans	9,525	9,526
Net cash provided by investing activities	9,525	9,526
Cash flows from financing activities	'	'
Repayment of Term Notes	-9,525	-9,526
Net cash used in financing activities	-9,525	-9,526
Net change in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	1	1
Cash and cash equivalents at end of period	1	1
Supplemental disclosure of cash flow information	'	'
Interest paid	$812	$1,217

DESCRIPTION_OF_BUSINESS_AND_BA

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	'
	1.           DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
	California Petroleum Transport Corporation (the "Company"), which is incorporated in Delaware, is a special purpose corporation that was organized solely for the purpose of issuing, as agent on behalf of CalPetro Tankers (Bahamas I) Limited, CalPetro Tankers (Bahamas II) Limited, CalPetro Tankers (Bahamas III) Limited and CalPetro Tankers (IOM) Limited (each an "Owner" and, together the "Owners"), $167,500,000 Serial First Preferred Mortgage Notes, or the Serial Notes, and $117,900,000 8.52% First Preferred Mortgage Notes due in 2015, which we refer to as the Term Notes and together with the Serial Notes as the Notes. The Serial Notes were fully repaid April 1, 2006 and the Term Notes were fully repaid on October 1, 2014. The proceeds from the sale of the Notes were applied by way of long-term loans, being Serial Loans in respect of the Serial First Preferred Mortgage Notes and Term Loans in respect of the First Preferred Mortgage Notes due in 2015, to the Owners to fund the acquisition of four vessels (the "Vessels") from Chevron Transport Corporation ("Chevron"). The four vessels were then chartered out to Chevron under bareboat charters.
	The charter for one of the four vessels, the m.t. Front Voyager, was terminated on April 1, 2010. The vessel was sold and delivered to its new owners on April 8, 2010. The net proceeds from the sale were used to retire a portion of the Term Notes.
	In July 2014, the Owners received a request from Chevron to terminate the remaining three charters six months early, and subsequently entered into an early termination agreement (the “ETA”) with Chevron. Under the ETA, Chevron prepaid the charter hire up to the original termination date (subject to certain adjustments) and exercised its purchase option under the charters to purchase the remaining three vessels. The charter hire payments made by Chevron under the ETA were used to retire all remaining Term Notes. The closing for all transactions under the ETA and the retirement of all remaining Term Notes occurred on October 1, 2014. See Note 9.
	The interim financial statements of the Company have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. These financial statements are unaudited and should be read in conjunction with the audited financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2013. The Company follows the same accounting policies in the preparation of interim reports. In the opinion of management, the financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the financial condition, results of operations and cash flows of the Company for the interim periods presented and are not necessarily indicative of a full year's results.

PRINCIPAL_ACCOUNTING_POLICIES

PRINCIPAL ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Significant Accounting Policies [Text Block]	'
	2.           PRINCIPAL ACCOUNTING POLICIES
	(a)           Revenue and expense recognition
	Interest receivable on the Term Loans is accrued on a daily basis.  Interest payable on the Term Notes is accrued on a daily basis. The Owners reimburse the Company for general and administrative expenses incurred on their behalf.
	(b)           Deferred charges
	Deferred charges represent the capitalization of debt issue costs. These costs are amortized over the term of the Term Notes to which they relate on a straight line basis, which is not materially different to the effective interest rate method.
	(c)           Reporting and functional currency
	The reporting and functional currency is the United States dollar.
	(d)           Use of estimates
	The preparation of financial statements in accordance with US GAAP requires the Company to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities on the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
	(e)           Recently Issued Accounting Pronouncements
	There were no new accounting standards implemented in 2014 that had an impact on our results or new accounting standards to be implemented in the future that we expect to have an impact on our results when adopted.

TERM_LOANS

TERM LOANS	9 Months Ended
	Sep. 30, 2014
Receivables [Abstract]	'
TERM LOANS	'
	3.           TERM LOANS
	The principal balances of the Term Loans earn interest at a rate of 8.52% per annum and were repaid in full on October 1, 2014. See Note 9.

TERM_LOANS_COLLATERAL

TERM LOANS COLLATERAL	9 Months Ended
	Sep. 30, 2014
TERM LOANS COLLATERAL [Abstract]	'
TERM LOANS COLLATERAL	'
	4.           TERM LOANS COLLATERAL
	The Term Loans were collateralized by first preferred mortgages on the Vessels to the Company. The earnings and insurance relating to the Vessels subject to the charters with Chevron were collaterally assigned pursuant to an assignment of earnings and insurance to the Company, which in turn has assigned such assignment of earnings and insurance to The Bank of New York Mellon as the collateral trustee (the "Trustee"). The charters with Chevron and the Chevron Guarantees (where the obligations of Chevron are guaranteed by Chevron Corporation) relating to the Vessels were collaterally assigned pursuant to the assignment of initial charter and assignment of initial charter guarantee to the Company, which in turn has assigned such assignments to the collateral trustee.  The capital stock of each of the Owners has been pledged to the Company pursuant to stock pledge agreements which have also been collaterally assigned to the Trustee. All of the collateral was released on October 1, 2014 simultaneously with the closing of the transactions under the ETA and the retirement of all remaining Term Notes.
	On October 3, 2011, pursuant to the Collateral Trust Agreement, excess funds held by the Trustee in the amount of $6.7 million allocable to CalPetro Tankers (Bahamas III) Limited became available for release from the relevant trust account as a result of sufficient funds remaining on deposit at the Trustee for the payment in full of principal and interest on the Term Notes as they become due and were released to CalPetro Tankers (Bahamas III) Limited on the same date. CalPetro Tankers (Bahamas III) Limited paid a dividend of $6.7 million on December 15, 2011.

DEFERRED_CHARGES

DEFERRED CHARGES	9 Months Ended
	Sep. 30, 2014
Deferred Costs [Abstract]	'
DEFERRED CHARGES	'
	5.           DEFERRED CHARGES
	(in thousands of $)	September 30, 2014		December 31, 2013
	Debt arrangement fees	3,400		3,400
	Accumulated amortization	(3,400	)	(3,301	)
		—		99

TERM_NOTES

TERM NOTES	9 Months Ended
	Sep. 30, 2014
Notes Payable, Noncurrent [Abstract]	'
TERM NOTES	'
	6.           TERM NOTES
	(in thousands of $)	September 30, 2014	December 31, 2013
	8.52% Term Notes due 2015	9,525	19,051
	Less: short-term portion	—	(9,526	)
		9,525	9,525
	The outstanding debt as of September 30, 2014 was repaid in full on October 1, 2014. See Note 9.
	The Term Notes bear interest at a rate of 8.52% per annum. Interest is payable semi-annually. The Term Notes include certain covenants such as restriction on the payment of dividends and making additional loans or advances to affiliates. At September 30, 2014 and December 31, 2013, the Company was in compliance with these covenants.
	As of September 30, 2014, the effective interest rate for the Term Notes of the Company was 8.52%.

SHARE_CAPITAL

SHARE CAPITAL	9 Months Ended
	Sep. 30, 2014
Stockholders' Equity Note [Abstract]	'
SHARE CAPITAL	'
	7.           SHARE CAPITAL
	(in thousands of $)	30-Sep-14	December 31, 2013
	Authorized, issued and fully paid share capital:
	1,000 shares of $1.00 each	1	1

FINANCIAL_INSTRUMENTS

FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2014
Investments, Debt and Equity Securities [Abstract]	'
FINANCIAL INSTRUMENTS	'
	8.           FINANCIAL INSTRUMENTS
	Fair values
	The carrying value and estimated fair value of the Company's financial instruments at September 30, 2014 and December 31, 2013 are as follows:
	(in thousands of $)	September 30, 2014 Fair Value	September 30, 2014 Carrying Value	31-Dec-13	31-Dec-13
				Fair	Carrying
				Value	Value
	Cash and cash equivalents	1	1	1	1
	Term Loans	9,525	9,525	18,781	18,952
	Term Notes	9,525	9,525	18,880	19,051
	The estimated fair value of financial assets and liabilities are as follows:
	(in thousands of $)	30-Sep-14	Level 1	Level 2	Level 3
		Fair value
	Financial assets:
	Cash and cash equivalents	1	1	—	—
	Term Loans	9,525	—	9,525	—
	Financial liabilities:
	Term Notes	9,525	—	9,525	—
	(in thousands of $)	31-Dec-13	Level 1	Level 2	Level 3
		Fair value
	Financial assets:
	Cash and cash equivalents	1	1	—	—
	Term Loans	18,781	—	18,781	—
	Financial liabilities:
	Term Notes	18,880	—	18,880	—
	The following methods and assumptions were used to estimate the fair value of each class of financial instrument;
	Cash and cash equivalents - the carrying value is a reasonable estimate of fair value.
	Term Loans – the estimated fair value of the Term Loans at December 31, 2013 is based on the market price achieved in the last significant trading of the Term Notes. The estimated fair value at September 30, 2014 is the amount that was received in October 2014 upon early redemption. See Note 9.
	Term Notes – the estimated fair value of the Term Notes at December 31, 2013is based on the market price achieved in the last significant trading of the Term Notes (level two per ASC Topic 820).The estimated fair value at September 30, 2014 is the amount that was paid in October 2014 upon early redemption. See Note 9.
	Concentrations of risk
	The Company's only source of funds for the repayment of the principal and interest on the Term Notes are the repayments from the Owners. The Owners only source of funds for the repayment of the principal and interest on the Term Loans due to the Company are from charterhire payments from Chevron as well as investment income and the proceeds, if any, from the sale of any of the Vessels. Accordingly, the Company's ability to service its obligations on the Term Notes is wholly dependent upon the financial condition, results of operations and cash flows from the Owners.

Subsequent_Event_Notes

Subsequent Event (Notes)	9 Months Ended
	Sep. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events [Text Block]	'
	9. SUBSEQUENT EVENT
	Pursuant to an Early Termination Agreement entered into between the Company, CalPetro Tankers (Bahamas I) Limited ("CPT I"), CalPetro Tankers (Bahamas II) Limited ("CPT II"), CalPetro Tankers (IOM) Limited ("CPT IOM" and together with CPT I and CPT II, the "Owners"), and Chevron (the "Charterer"); (1) the existing bareboat charters for the vessels Altair Voyager, Cygnus Voyager and Sirius Voyager (together, the "Vessels"), which were owned by the Owners, were terminated as of October 1, 2014; (2) the charter hire payments paid in connection with the Early Termination Agreement were used to redeem the remaining outstanding Term Notes on October 1, 2014 pursuant to the terms of the indenture governing the Notes; and (3) the Vessels were sold to the Charterer pursuant to the provisions of the bareboat charters for the Vessels. The outstanding balance of the Term Loans was also repaid in full on October 1, 2014. Following the early redemption of the outstanding Term Notes and the repayment of the Term Loans it is expected that the Company will be dissolved as it will serve no business purpose.

PRINCIPAL_ACCOUNTING_POLICIES_

PRINCIPAL ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Revenue and expense recognition	'
	(a)           Revenue and expense recognition
	Interest receivable on the Term Loans is accrued on a daily basis.  Interest payable on the Term Notes is accrued on a daily basis. The Owners reimburse the Company for general and administrative expenses incurred on their behalf.
Deferred charges	'
	(b)           Deferred charges
	Deferred charges represent the capitalization of debt issue costs. These costs are amortized over the term of the Term Notes to which they relate on a straight line basis, which is not materially different to the effective interest rate method.
Reporting and functional currency	'
	(c)           Reporting and functional currency
	The reporting and functional currency is the United States dollar.
Use of estimates	'
	(d)           Use of estimates
	The preparation of financial statements in accordance with US GAAP requires the Company to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities on the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Recently Issued Accounting Pronouncements	'
	(e)           Recently Issued Accounting Pronouncements
	There were no new accounting standards implemented in 2014 that had an impact on our results or new accounting standards to be implemented in the future that we expect to have an impact on our results when adopted.

DEFERRED_CHARGES_Tables

DEFERRED CHARGES (Tables)	9 Months Ended
	Sep. 30, 2014
Deferred Costs [Abstract]	'
Deferred charges	'
	(in thousands of $)	September 30, 2014		December 31, 2013
	Debt arrangement fees	3,400		3,400
	Accumulated amortization	(3,400	)	(3,301	)
		—		99

TERM_NOTES_Tables

TERM NOTES (Tables)	9 Months Ended
	Sep. 30, 2014
Notes Payable, Noncurrent [Abstract]	'
Term Notes	'
	(in thousands of $)	September 30, 2014	December 31, 2013
	8.52% Term Notes due 2015	9,525	19,051
	Less: short-term portion	—	(9,526	)
		9,525	9,525
	The outstanding debt as of September 30, 2014 was repaid in full on October 1, 2014. See Note 9.

SHARE_CAPITAL_Tables

SHARE CAPITAL (Tables)	9 Months Ended
	Sep. 30, 2014
Stockholders' Equity Note [Abstract]	'
Share Capital	'
	(in thousands of $)	30-Sep-14	December 31, 2013
	Authorized, issued and fully paid share capital:
	1,000 shares of $1.00 each	1	1

FINANCIAL_INSTRUMENTS_Tables

FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2014
Investments, Debt and Equity Securities [Abstract]	'
Carrying Values and Estimated Fair Values of Financial Instruments	'
	The carrying value and estimated fair value of the Company's financial instruments at September 30, 2014 and December 31, 2013 are as follows:
	(in thousands of $)	September 30, 2014 Fair Value	September 30, 2014 Carrying Value	31-Dec-13	31-Dec-13
				Fair	Carrying
				Value	Value
	Cash and cash equivalents	1	1	1	1
	Term Loans	9,525	9,525	18,781	18,952
	Term Notes	9,525	9,525	18,880	19,051
Estimated Fair Value of Financial Assets and Liabilities	'
	The estimated fair value of financial assets and liabilities are as follows:
	(in thousands of $)	30-Sep-14	Level 1	Level 2	Level 3
		Fair value
	Financial assets:
	Cash and cash equivalents	1	1	—	—
	Term Loans	9,525	—	9,525	—
	Financial liabilities:
	Term Notes	9,525	—	9,525	—
	(in thousands of $)	31-Dec-13	Level 1	Level 2	Level 3
		Fair value
	Financial assets:
	Cash and cash equivalents	1	1	—	—
	Term Loans	18,781	—	18,781	—
	Financial liabilities:
	Term Notes	18,880	—	18,880	—

DESCRIPTION_OF_BUSINESS_AND_BA1

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) (USD $)	0 Months Ended	1 Months Ended	9 Months Ended
	Apr. 01, 2010	Jul. 31, 2014	Sep. 30, 2014	Apr. 01, 1995	Apr. 01, 1995
	vessel	vessel	vessel	Term Notes [Member]	Serial Notes [Member]
			Rate
Mortgage notes	'	'	'	$117,900,000	$167,500,000
Interest rate (in hundredths)	'	'	8.52%	'	'
Number of vessels	'	'	4	'	'
Number of vessels terminated	1	'	'	'	'
Number of vessels requested for termination	'	3	'	'	'
Vessels early termination term	'	'6 months	'	'	'
Number of vessels acquired	'	3	'	'	'

TERM_LOANS_Details

TERM LOANS (Details)	9 Months Ended
	Sep. 30, 2014
	Rate
Receivables [Abstract]	'
Interest rate on term loans (in hundredths)	8.52%

TERM_LOANS_COLLATERAL_Details

TERM LOANS COLLATERAL (Details) (USD $)	Dec. 15, 2011	Oct. 03, 2011
In Millions, unless otherwise specified
TERM LOANS COLLATERAL [Abstract]	'	'
Excess fund held by trustee	'	$6.70
Dividend paid by CalPetro Tankers (Bahamas III) Limited	$6.70	'

DEFERRED_CHARGES_Details

DEFERRED CHARGES (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Deferred Costs [Abstract]	'	'
Debt arrangement fees	$3,400	$3,400
Accumulated amortization	-3,400	-3,301
Deferred charges	$0	$99

TERM_NOTES_Details

TERM NOTES (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified	Rate
Less: short-term portion	($9,525)	($9,526)
Notes Payable, Noncurrent	0	9,525
Interest rate (in hundredths)	8.52%	'
Outstanding debt repayable [Abstract]	'	'
Effective interest rate (in hundredths)	8.52%	'
8.52% Term Notes due 2015 [Member]	'	'
Total debt	9,525	19,051
Less: short-term portion	0	-9,526
Notes Payable, Noncurrent	9,525	9,525
Outstanding debt repayable [Abstract]	'	'
Total debt	$9,525	$19,051

SHARE_CAPITAL_Details

SHARE CAPITAL (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, except Share data, unless otherwise specified
Stockholders' Equity Note [Abstract]	'	'
Authorized, issued and fully paid share capital: 1,000 shares of $1.00 each	$1	$1
Ordinary shares authorized (in shares)	1,000	1,000
Ordinary shares issued (in shares)	1,000	1,000
Ordinary shares fully paid (in shares)	1,000	1,000
Ordinary shares authorized - par value (in dollars per share)	$1	$1

FINANCIAL_INSTRUMENTS_Details

FINANCIAL INSTRUMENTS (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Fair Value, Measurements, Recurring [Member]	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Cash and cash equivalents	$1	$1
Term Loans	9,525	18,781
Term Notes	9,525	18,880
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Cash and cash equivalents	0	0
Term Loans	0	0
Term Notes	0	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Cash and cash equivalents	0	0
Term Loans	9,525	18,781
Term Notes	9,525	18,880
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Cash and cash equivalents	1	1
Term Loans	0	0
Term Notes	0	0
Carrying (Reported) Amount, Fair Value Disclosure [Member]	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Cash and cash equivalents	1	1
Term Loans	9,525	18,952
Term Notes	9,525	19,051
Estimate of Fair Value, Fair Value Disclosure [Member]	'	'
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]	'	'
Cash and cash equivalents	1	1
Term Loans	9,525	18,781
Term Notes	$9,525	$18,880