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Hatten Land gets more time to repay US$20m loan by pledging more shares to lender
CATALIST-listed property developer Hatten Land has been given more time to repay a US$20 million loan, but more shares in the company have been pledged to the lender, Haitong International Financial Products (Singapore).
Hatten Holdings pledged an additional 360 million ordinary shares it holds in the company to Haitong, bringing the stake pledged to the lender to about 53 per cent.
Hatten Holdings said it will notify the company of any other share-pledging arrangement relating to the shares it holds in the company, and of any event which may result in a breach of the provisions of the convertible loan agreement.
Haitong and Hatten Land had entered the US$20 million convertible loan agreement in 2017. The property developer initially had up to April 10, 2020 to repay the loan, with a partial US$2.5 million payment due by Jan 10.
With the reprieve granted, Hatten Land will now repay the loan in four instalments this year: US$2 million on Jan 10 and US$6 million each on April 10, July 10 and Oct 10.
Hatten Land said it is still in talks with the lender to further extend the payment period for the instalments due to the impact of Covid-19 on its operations.