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.