Sunshine Oil Sands (02012) issued an announcement. On April 11, 2024, the company signed an interest exemption agreement with the extension holder. The extension holder agreed to unconditionally and irrevocably exempt the company from accrued interest (“interest exemption”) from January 1, 2024 to December 31, 2024. According to the reinstatement and amendment extension agreement reached between the two parties on August 8, 2023 (“Renewal and Amendment Extension Agreement”), the total amount of exempted interest is US$31.5291 million, based on the calculation of the outstanding amount (i.e. principal plus interest) at an annual interest rate of 10.0%.
Other than the interest exemption, all other terms and conditions for resuming and amending the extension agreement remain unchanged.
The board of directors believes that establishing an interest exemption agreement is in the overall interest of the company and its shareholders, because the interest exemption agreement will drastically reduce the company's liabilities while reducing the balance to liability ratio.