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Moya gives unit corporate guarantee for 265b rupiah banking facility
WATER treatment company Moya Holdings Asia said on Monday that its subsidiary, Air Semarang Barat, had entered into a credit agreement on Apr 29 with a lender for banking facilities of up to 265 billion rupiah (S$25.2 million), secured by a corporate guarantee from Moya.
On May 17, the loan covenant was amended, requiring Air Semarang Barat to immediately prepay any outstanding amounts under the credit agreement in the event of a change of ownership of Moya.
Moya is controlled by Tamaris Infrastructure, which owns a 72.84 per cent stake in Moya. Tamaris is controlled by Indonesian billionaire Anthony Salim.
Specifically, prepayment will be triggered if there is a change of the ultimate beneficial owner of Tamaris, or if Tamaris' stake in Moya falls below 67 per cent.
Assuming the occurrence of a prepayment event were to cause a cross default under other borrowings of the group, the aggregate level of facilities that may be affected is estimated to be approximately US$241 million (excluding interest and fees), Moya said.
Tamaris had previously entered into a share pledge arrangement to secure a banking facility from OCBC Bank, Moya also revealed.
As at Monday, Tamaris had pledged 1.5 billion shares or 35.68 per cent of Moya's total issued share capital to OCBC Bank.