A “significant portion” of that loss was the result of adverse effects of interest-rate swaps on Project Gemini.

Because Northland has chosen to forego hedge accounting, such adverse effects directly bite into the company’s operating results, despite having no immediate impact on the company’s cash obligations.

These fair-value adjustments, reflecting the marked-to-market value of Northland’s assets and liabilities, “will reverse over time”, Northland claims.

The