Indebtedness, guarantees and other contingent obligations
Hong Kong IPO disclosure precedents · 78 companies, 82 items
high borrowings or gearing, covenants, guarantees given or received (including related-party guarantees to be released on listing), financial guarantee contracts, shortfall-funding or repurchase obligations
During the Track Record Period, we relied on external sources of financing for a significant portion of our capital needs for paying charter hire to vessel suppliers and for the purchase of vessels.
Financial Information · p. 417
Any increase in the interest rates could lead to an increase of our finance costs and thus adversely affect our results of operation.
Financial Information · p. 417
The borrowings and lease liabilities guaranteed by our related parties are non-trade in nature, and the respective balance and the guarantee provided by our related parties will be fully settled or released before the Listing.
The gross proceeds from the finance leases was approximately USD27.0 million in aggregate, among which approximately USD18.0 million was transferred to Customer B, approximately USD5.4 million was transferred to Individual A (being approximately USD3.6 million in October 2018 and an additional approximately USD1.8 million in October 2019) and approximately USD5.4 million was initially retained by us as a reserve for potential repayment obligations under the finance leases for BAO GRAND, BAO GLORY and BAO FENG in the event Customer B or Individual A fails to make timely repayments to Supplier C.
Business · p. 276
Our Directors considered that, even though we have assumed the repayment obligations under the Financing Arrangement without charging any service fee, the Financing Arrangement was in our interests as we were able to reinforce our business relationship with Customer B as well as secure business opportunities for provision of ship management services to each of BAO GRAND, BAO GLORY and BAO FENG as provided for under the Tripartite Cooperation Agreement.
Business · p. 277
Our Directors confirmed that save for the Financing Arrangement and the Tripartite Cooperation Agreement, we have not entered into any similar financing arrangements with our customers and we do not intend to enter into any other similar financing arrangements going forward.