OUE to lend IHC up to S$50m for working capital needs
PROPERTY developer OUE, which has launched a takeover bid for International Healthway Corporation (IHC), has agreed to lend the nursing home owner up to S$50 million to finance its working capital requirements.
It entered into a loan agreement with IHC on Friday, with an interest rate of 4 per cent per year.
This comes after OUE issued a "comfort letter" stating its intention to work towards stabilising IHC's business and financial position.
IHC shares were suspended from trading on Monday after the firm confirmed it was in breach of a covenant on its S$100 million outstanding bonds, which could entitle bond holders to demand immediate payment.
The breach arose after the total shareholding of co-founders Fan Kow Hin, Jong Hee Sen, Aathar Ah Kong Andrew and their immediate family members fell below 30 per cent amid a change of control.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Seatrium unit to fully redeem S$500 million worth of floating-rate bonds early
Yeo Guat Kwang, John Chen retiring from corporate boards
US: Wall St opens higher
Air China orders homegrown C919s in challenge to jet duopoly
HCA beats first-quarter profit estimates on higher patient admissions
F&B operator YKGI to exclusively operate Chicha San Chen in Macau for next eight years