Archive for the ‘Loans & Repayments’ Category

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New status update of defaulted loan to BVI-based Newco Group Ltd.

Tuesday, February 19th, 2008

Some weeks ago, the Nevada-based oil and gas company JMG Exploration, Inc. announced termination of the share exchange with British Virgin Islands-registered Newco Group Ltd. The BVI company had failed to repay a $3 million loan and accrued interest that was due December 31, 2007, and the termination was effective from that date.

JMG Exploration has already updated the status of defaulted loan to the BVI company. Now, JMG announced that on February 8 it entered into an extension agreement allowing Newco to repay the loan and accrued interest until April 30, 2008. If the note is not paid by that time, Newco agreed to have the 1,427,684 shares of Iris which secure the loan immediately transferred to JMG as payment in full of the outstanding obligations.

In the current status update, JMG Exploration informed that both companies have also released each other from any liabilities resulting from the failure of the Share Exchange Agreement to be consummated. The US company also reported that the Fellows project was sold effective January 31, 2008, for approximately $385,000.

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Indian Hotels acquires a stake in Orient-Express Hotels through BVI-domiciled Samsara Properties

Tuesday, October 9th, 2007

Indian Hotels acquired the 10% stake in Orient-Express Hotels, through its wholly owned subsidiary Samsara Properties, which is registered in the British Virgin Islands. Purchase price made $211.28 million (Rs 857 crore).

The BVI-incorporated Samsara purchased almost 4.25 million shares between August 17 and September 14 from the market. It was done after the company received a loan of $300 million from London-based Tata Ltd., which carries an annual interest rate of 6.25%. On August 20, Samsara drew $135 million under the terms of the loan agreement; the amount of another $100 million was drawn by the company on September 11, and later a final sum of $65 million.

Now IHC want to discuss forming an alliance with Orient-Express Hotels that would probably include combination of the international properties of the two companies. In a filing with the SEC, it said it had delivered a letter last Friday to James B. Hurlock, chairman of Orient-Express Hotels. After the proposed dialogue with Orient-Express, IHC and Samsara would review their ivestment in the company on a regular basis. Then, the company would decide whether to acquire additional shares in the company or dispose of all or a part of the shares is has bought.

By words of IHC vice-chairman R.K. Krishna Kumar, “The possible combination of the two brands will create a powerful competitive advantage.”

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JMG signs Share Exchange Agreement with shareholders of BVI-registered Newco Group

Tuesday, October 2nd, 2007

JMG Exploration, Inc., has announced that it has signed a Share Exchange Agreement with the shareholders of Newco Group Limited, – a limited liability company organized under the laws of the British Virgin Islands. The information about the acquisition of the BVI company by the Nevada-incorporated JMG, was published in August 2007. The Board of Directors of JMG Exploration has given its approval to the Share Exchange Agreement, and now is recommending shareholder approval of the transaction. The company provides for the delivery to JMG of 100% of the outstanding stock of Newco, in exchange for the delivery by JMG of JMG common stock representing  62.5% of company’s capital stock. So, after the share exchange, the existing JMG shareholders will retain approximately a 37.5% equity interest in the company.

BVI-based Newco currently owns about 14.5% of shares of Iris Computers Ltd., a corporation organized under the laws of India and one of the leading distributors of IT products in India. In the closest time, JMG expects to execute documents providing for a $3,000,000 loan to the BVI company, to enable Newco to purchase39% equity interest in Indian corporation.

The closing of the Share Exchange Agreement is conditioned by the delivery of 2007 US audited financial statements, partial year review for 2008 for BVI-based Newco and Iris, and approval of the share exchange transaction by JMG shareholders.  The transaction is expected to close until December 31, 2007. If the JMG share exchange with Newco shareholders fails to close, the BVI company will be obligated to repay the $3,000,000 loan to JMG on or before December 31, 2007.

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