Baku, Azerbaijan, Sept.17
By Leman Zeynalova – Trend:
Canada’s Zenith Energy company has reduced its short-term debt by approximately $2,175,000 during the past 14 months, Trend reports citing the company.
As announced on August 5, 2019, the Company was notified by the guarantor of the facility, Andrea Cattaneo, who serves as Chief Executive Officer of Zenith, that he had received legal advice towards initiating a process of litigation against the lender in view of the fact that his guarantee may have been obtained unlawfully.
The full amount of the principal, and related accrued interest, of the Loan Facility is represented and accounted as a liability in the audited Annual Financial Report of the Company as of March 31, 2019, and most recently in the unaudited Q1 Financial Statements as of June 30, 2019 for a total amount of S$2,080,523.
The result of the potential litigation could be a reduction or cancellation of the liability in relation to the Loan Facility.
The Company can confirm that it has begun negotiations with the lender to settle the liability at a significant discount in consideration of the aforementioned.
Zenith can confirm that the total outstanding liability in relation to the Convertible Loan will now stand at $560,000 following the Conversion.
The Company also announced that it had agreed with the Lenders to amend the terms of the Convertible Loan to include the possibility of optional redemptions (the "Optional Redemption") to be made by the Company in lieu of conversion of the Convertible Loan by the Lenders for set redemption amounts (the "Redemption Amounts") amortised across the duration of the Facility.
Zenith can confirm that it has paid a total of $600,000 in Optional Redemptions to reduce the total outstanding liability in relation to the Convertible since the aforementioned revised terms were agreed.
---
Follow the author on Twitter: @Lyaman_Zeyn