Hong Kong-listed NagaCorp Ltd, the owner and operator of Cambodian integrated resort NagaWorld in Phnom Penh, said Monday it has drawn down US$70 million of a maximum US$80 million shareholder loan provided by the company’s late founder, Dr Chen Lip Keong.
The loan, originally agreed to last October some three months before Dr Chen’s passing in January, was specifically provided to help NagaCorp either refinance or pay down outstanding notes due 2024.
In a Monday filing, NagaCorp said it had drawn down US$70 million and is “confident that with this drawdown, the 2024 Notes will be discharged in full upon their maturity.” The loan was officially provided to NagaCorp by a wholly-owned subsidiary of The Sakai Trustee – a family trust established by Dr Chen for the purposes of succession planning and which holds a 69.26% share of the company.
NagaCorp had previously issued an announcement in January outlining its expectation that the passing of Dr Chen would not have any material impact on the loan agreement, and was not aware of any circumstance that would or could prevent the Loan Agreement from remaining in full force and effective.
As recently reported by IAG, NagaCorp last month terminated the employment of Chen Cherchi, one of three sons of Dr Chen to be appointed to a senior executive position in early 2022 as part of the company’s succession planning. Cherchi had been CEO – Finance and Treasury, with his departure coming just weeks after assuming a 6.6% stake in the company.
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