Adventus Holdings, on Sept 20, entered into a loan agreement with Fiesta Development Pte Ltd, where the latter has agreed to loan the former US$10 million ($14.1 million).

 

The loan comes with an interest fee of 5% per annum and is repayable in full at the end of 12 months from the loan disbursement date. The loan agreement also comes with the option of an extension for another 12 months or beyond, with notice given to the lender (Fiesta Development) in writing.

 

Fiesta Development is owned by Chin Bay Ching, who is also the controlling shareholder of Adventus Holdings. As at Sept 20, Chin has a direct and deemed interest of 756.6 million ordinary shares, or a 30.86% stake in Adventus.

 

Accordingly, Chin is deemed as an interested person in this transaction.

 

Of the loan amount, 10%-20% will go towards the development cost, 60%-70% will go towards repaying its bank borrowings and 10%-20% will go towards working capital.

 

In its bourse filing, Adventus says: &ldquo The group is closely monitoring and managing its cash resources, cashflow and working capital requirements and believes that the loan will enhance the group&rsquo s flexibility in its cash management strategy and provide additional cash for the group to apply towards the proposed uses of the loan proceeds as set out above.&rdquo