According to the Zhitong Finance App, Huaxing Holdings (08237) issued an announcement. On June 16, 2023 and June 22, 2023, HHI (as the borrower) and LHI (as the operating company and debtor) entered into a financing agreement with SC (as the lender). SC provided HHI with loan financing in the amount of SGD 55 million, accruing interest at a fixed annual interest rate of 11%. HHI and LHI are each indirect wholly-owned subsidiary of the Company.
According to the financing agreement, HHI shall repay all of the loan financing together with accrued interest for one year from the date of withdrawal; HHI shall pay prepaid interest of SGD 3,025,000 to SC on December 26, 2023, equivalent to 6 months of interest on loan financing; and HHI shall pay SGD 513,800 in interest for January 2024 to SC on January 26, 2024.
On December 20, 2023, HHI, LHI and SC agreed to extend and exempt the advance interest payment and January 2024 interest payment until February 26, 2024; and on February 26, 2024, HHI should pay SGD 4.1143 million, including advance interest payments, January 2024 interest, and accrued interest on the outstanding principal amount of advance interest payments, January 2024 interest, and loan financing, at an annual interest rate of 11% per annum.
On February 25, 2024, HHI, LHI and SC entered into a supplementary agreement to the financing agreement. SC must provide HHI with additional loan financing of SGD 3 million, with a fixed annual interest rate of 14.5%; and the unpaid amount of SGD 4.114,300 due on February 26, 2024 will be capitalized on that day and added to the outstanding amount of additional loan financing, which will then be treated as part of the additional loan financing amount for all purposes. The final repayment date for outstanding amounts of loan financing and additional loan financing will be December 26, 2024. The Company has obtained CMI Hong Kong's consent to enter into a supplementary agreement and execute the proposed transactions under the Group.
As agreed between the Company and CMI Hong Kong on December 28, 2023, the Company is required to make a repayment to CMI Hong Kong in February 2024 as a further partial repayment of the principal amount of the 2020 convertible bonds together with accrued and unpaid interest and/or default interest. The company plans to use the net proceeds from additional loan financing to partially repay the 2020 convertible bonds.
As of the date of this announcement, the company's management is in discussions with CMI Hong Kong to further extend the deferment period and agree on the repayment period for the remaining amount due under the 2020 convertible bonds.