Jason CEO reaches deal to avert default on loan

JASON Holdings chairman and chief executive Jason Sim has reached a deal with a creditor to avert default on a loan in which he had pledged 10 million of his shares, the timber flooring company announced on Friday.

The company on June 2 announced that Mr Sim had pledged more than 70 million of his shares in the company to various creditors, including 10 million shares that was collateral for a loan agreement with Lantau Holdings.

On June 4, Jason announced that Lantau had alleged a default by Mr Sim and was seeking to exercise its claim on the shares, which represented about 4.63 per cent of the company's issued share capital.

On Friday, Jason said that Mr Sim and Lantau had reached an agreement to avert default. The company also clarified that Mr Sim ceased to have both legal and beneficial interest in the 10 million shares when they were pledged to Lantau on May 15.

Jason shares last traded at 64 Singapore cents on Thursday.