Business
Roll Over of Loan to Joint Venture Company
Roll Over of Loan to Joint Venture Company.
About this update from Capital Metals Plc
[{"type":"text","content":"\n \nRNS Number : 3809G Equatorial Palm Oil plc 05 November 2018 \n\n5 November 2018\n \nEQUATORIAL PALM OIL plc\n(\"EPO\" or the \"Company\") \n \nRoll Over of Loan to Joint Venture Company\n \nEquatorial Palm Oil plc (AIM: PAL), the AIM listed palm oil development and production company with operations in Liberia, West Africa, announces today that it has agreed to extend the maturity of its US$2,00,000 loan to its 50 per cent. owned joint venture company, Liberian Palm Developments Limited (\"LPD\"), announced on 7 November 2013 for the funding or LPD's operations (the \"Loan\"). The maturity date for the Loan, for which US$2,938,656 including accrued interest is outstanding, will be extended from 7 November 2018 to 6 November 2023 (the \"Loan Extension\"). The Loan Extension has been effected by a deed of amendment and all other terms of the Loan remain unchanged.\n \nThe key terms of the loan are as follows:\n· Term - 5 years expiring on 6 November 2023\n· Interest - USD LIBOR + 4 per cent per annum or 8 per cent per annum, whichever is the higher\n· Repayment - Loan principal (together with all accrued Interest due) on expiry of the Term or earlier at the election of LPD\n \nThe total liabilities owed by LPD to EPO as at 1 November 2018 amount to US$6,192,676.04. \n \nRelated Party Transaction\nKLK (through its wholly owned subsidiary KL-Kepong International Limited) currently holds 50 per cent of the issued share capital of LPD and ordinary shares in EPO representing approximately 62.86 per cent. of the issued share capital of the Company. Accordingly, LPD is a related party to the Company as defined in the AIM rules for Companies and the Loan Extension is classified as related party transaction under the AIM Rules for Companies. Michael Frayne being the non-related director of EPO for the purposes of this transaction (Geoffrey Brown serves on the Board of LPD), considers, having consulted with the Compan...