Jade Road Investments Ltd on Tuesday said it intends to dispose of certain legacy assets by transferring them to a special purpose vehicle.
Jade Road Investments is a Hong Kong-based investment company focused on providing capital and financing to small and medium enterprises worldwide.
The firm will be transferring its legacy Asian assets to Eastern Champion Ltd. Upon completion of the transfer, the SPV will make an in specie dividend of its shares to Jade Road’s existing shareholders.
Shareholders will continue to own their existing shares in the company and an equivalent economic interest in the legacy assets through ownership of shares in the SPV, Jade Road explained.
Loan notes issued by Jade Road will be deemed repaid and cancelled, while new replacement loan notes with a revised maturity date of June 30 will be issued by the SPV to noteholders who will retain their security interest over the legacy assets.
They will benefit from an additional charge over the firms’ retained assets, capped at $500,000.
Chair John Croft said: ‘The pace and intricacy of extracting proper value from the legacy assets has acted as a serious inhibitor to the company’s ability to grow and raise new capital. The transfer of its legacy assets to a separate and fully independent company will enable Jade to present itself as a clean investment platform which can invest in new assets in line with its investment policy of seeking opportunities with the best risk-adjusted returns globally. I look forward to providing further updates on our plans in due course.’
Shares in Jade Road Investments were untraded at 1.75 pence each in London on Tuesday afternoon.
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