Loan principal amount – Sendika12 http://sendika12.org/ Thu, 19 May 2022 12:44:30 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://sendika12.org/wp-content/uploads/2021/10/profile-120x120.png Loan principal amount – Sendika12 http://sendika12.org/ 32 32 Arch Resources Announces Exchanges with Holders of Approximately $125.2 Million Principal Amount of Convertible Notes https://sendika12.org/arch-resources-announces-exchanges-with-holders-of-approximately-125-2-million-principal-amount-of-convertible-notes/ Thu, 19 May 2022 10:30:00 +0000 https://sendika12.org/arch-resources-announces-exchanges-with-holders-of-approximately-125-2-million-principal-amount-of-convertible-notes/ ST. LOUIS, May 19, 2022 /PRNewswire/ — Arch Resources, Inc. (NYSE: ARCH) (“Arch Resources” or “we”) announced today that the May 18, 2022it has entered into separate, privately negotiated exchange agreements with a limited number of holders of its 5.25% senior convertible bonds due 2025 (the “Bonds”) to exchange (collectively, the “Exchanges”) approximately $125.2 million […]]]>

ST. LOUIS, May 19, 2022 /PRNewswire/ — Arch Resources, Inc. (NYSE: ARCH) (“Arch Resources” or “we”) announced today that the May 18, 2022it has entered into separate, privately negotiated exchange agreements with a limited number of holders of its 5.25% senior convertible bonds due 2025 (the “Bonds”) to exchange (collectively, the “Exchanges”) approximately $125.2 million principal amount of the notes for consideration consisting of a total of approximately $130.1 million in cash and a number of common shares of Arch Resources to be determined over a period of four consecutive trading days beginning on and including, May 19, 2022. Trades should be consummated on or about May 25, 2022, subject to customary closing conditions. Exchanged tickets will be removed at the end of exchanges. Following the close of trading, Arch Resources expects approximately $30.0 million the full principal amount of the Notes will remain outstanding with unchanged terms.

Arch Resources is undertaking these exchanges in accordance with its previously stated objective of improving and simplifying its capital structure, and is using a substantial amount of cash in the settlement process to limit overall stock dilution, prevent potential future dilution resulting from expected future dividend payments, reduce overall indebtedness and eliminate future annual interest payments.

The exchanges are being made by way of private placements, and all common shares to be issued in connection with the exchanges will be issued pursuant to exemption from the registration requirements of the Securities Act 1933, as amended (the ” Securities Act”) granted by Section 4(a)(2) of the Securities Act in transactions not involving a public offering. This press release is neither an offer to sell nor a solicitation of an offer to buy any of the securities described above, and there will be no offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

As part of the Exchanges, Arch Resources also intends to enter into certain capped call early settlement agreements (the “Capped Call Early Settlement Agreements”) with counterparties to Arch Resources’ capped call transactions. (the “capped call counterparties”), which were entered into as part of the issuance of the bonds, to terminate part of these purchase transactions capped by a notional amount corresponding to the amount of the bonds exchanged (the ” anticipated outcomes”). We anticipate that the Capped Call Counterparties will settle the Early Closeouts by delivering to Arch Resources a number of Arch Resources Common Shares equal to the Early Closeout Consideration on or about May 26, 2022. Pursuant to these settlements, Capped Call Counterparties and/or their respective affiliates may purchase shares of Arch Resources common stock in secondary market transactions.

About Arch Resources

Arch Resources is a leading producer of high quality metallurgical products for the global steel industry. The company operates large, modern and highly efficient mines that consistently set the industry standard for mine safety and environmental stewardship.

Forward-Looking Statements: This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, c i.e. statements relating to future and not past events. In this context, forward-looking statements often deal with our expected future business and financial performance and often contain words such as “should”, “could”, “appear”, “estimate”, “expect”, “anticipate”. , “intends,” “may,” “plans,” “predicts,” “projects,” “believes,” “seeks” or “will.” Actual results may differ materially from those projected due to numerous factors, including: the impacts of the COVID-19 pandemic; changes in coal prices, which may be caused by numerous factors beyond our control, including changes in domestic and foreign supply and demand of coal and domestic and foreign demand for steel and electricity; volatile economic and market conditions; operating risks beyond our control, including risks relating to mining conditions, failures or maintenance issues mining, processing and plant equipment, natural and weather disasters, unavailability of raw materials, equipment or other critical supplies, mining accidents and other risks inherent in coal mining beyond our control; loss of availability, reliability and profitability of transmission facilities and fluctuations in transmission costs; inflationary pressures and the availability and price of mining and other industrial supplies; the effects of foreign and domestic trade policies, actions or disputes on the level of trade between the countries and regions in which we operate, the competitiveness of our exports or our ability to export; competition, both within our industry and with producers of competing energy sources, including the effects of any current or future legislation or regulations designed to support, promote or mandate renewable energy sources; alternative steelmaking technologies that may reduce demand for our coal; loss of key personnel or inability to attract additional qualified personnel and availability of qualified employees and other labor factors; our ability to obtain new coal supply agreements or renew existing coal supply agreements; the loss or significant reduction in purchases of our largest customers; disruptions in the supply of coal to third parties; risks related to our international growth; our relationships with, and other conditions affecting, our customers and our ability to collect payments from our customers; the availability and cost of bonds, including potential collateral requirements; additional requests for credit support by third parties and decisions by banks, surety providers or other counterparties to reduce or eliminate their exposure to the coal industry; inaccuracies in our estimates of our coal reserves; defects in title or loss of a leasehold interest; losses resulting from certain marketing and asset optimization strategies; cyberattacks or other security breaches that disrupt our operations or result in the unauthorized disclosure of proprietary, confidential or personally identifiable information; our ability to acquire or develop coal reserves in an economically feasible manner; our ability to comply with restrictions imposed by our term loan facility and other financing agreements; our ability to service our outstanding indebtedness and raise the necessary funds to redeem Notes for cash following a fundamental change or to pay cash amounts due upon conversion; existing and future laws and regulations affecting both our coal mining operations and the use of coal by our customers; government policies and taxes, including those aimed at reducing emissions of elements such as mercury, sulfur dioxides, nitrogen oxides, particulates or greenhouse gases; increased pressure from political and regulatory authorities, as well as environmental and climate change activist groups, and lending and investment policies adopted by financial institutions and insurance companies to address concerns about the impacts environmental effects of burning coal; increased attention to environmental, social or governance issues; our ability to obtain and renew various permits necessary for our mining operations; risks relating to regulators ordering the temporary or permanent closure of some of our mines in certain circumstances; risks related to extensive environmental regulations that impose significant costs on our mining operations and could result in significant litigation or liability; the accuracy of our reclamation estimates and other mine closure obligations; the existence of hazardous substances or other environmental contamination on property we own or use; risks relating to tax legislation and our ability to utilize net operating losses and certain tax credits; our ability to pay basic or variable dividends in accordance with our announced return of capital program, and other risks as disclosed in our most recent Annual Report on Form 10-K and subsequent filings with the SEC. All forward-looking statements contained in this press release, as well as all other written and oral forward-looking statements attributable to us or persons acting on our behalf, are expressly qualified in their entirety by the cautionary statements contained in this section and elsewhere in this press release. These factors are not necessarily all important factors that could affect us. These risks and uncertainties, and other risks that we are not aware of or that we currently believe are not material, may cause our actual future results to differ materially from those expressed in our forward-looking statements. These forward-looking statements speak only as of the date such statements were made, and we do not undertake to update our forward-looking statements, whether as a result of new information, future events or otherwise. except as may be required by federal securities laws.

SOURCE Arch Resources, Inc.

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Medium-sized and small-sized markets drove year-over-year house prices higher in the first quarter https://sendika12.org/medium-sized-and-small-sized-markets-drove-year-over-year-house-prices-higher-in-the-first-quarter/ Tue, 03 May 2022 20:38:00 +0000 https://sendika12.org/medium-sized-and-small-sized-markets-drove-year-over-year-house-prices-higher-in-the-first-quarter/ According to the latest quarterly report from the National Association of Realtors, the first quarter of 2022 found more markets hitting double-digit annual price gains compared to the previous quarter. Meanwhile, around 70% of the 185 metros measured saw such price gains, up from 66% in the fourth quarter of 2021. The increases come as […]]]>

According to the latest quarterly report from the National Association of Realtors, the first quarter of 2022 found more markets hitting double-digit annual price gains compared to the previous quarter. Meanwhile, around 70% of the 185 metros measured saw such price gains, up from 66% in the fourth quarter of 2021.

The increases come as median prices for existing single-family homes rose at a faster pace nationally, rising nearly 16% a year ago to $368,200. By comparison, the year-over-year pace in the prior quarter was 14.3%. The South region accounted for 45% of existing single-family home sales in the first quarter and saw double-digit price appreciation of 20.1%. The Northeast saw only a 6.7% increase, the Midwest increased to 8.5%, and the West increased to around 6%.

“Prices nationwide have surged for the better part of two years, including the first quarter of 2022,” said NAR chief economist Lawrence Yun. “Given the extremely low inventory, prices are unlikely to decline, but appreciation is expected to slow in the coming months.”

Yun hints that his prediction is based on an expectation of additional supply for the next quarter, citing that the start of the first quarter saw an all-time high in inventory.

“I expect more decline in housing demand as mortgage rates weigh more heavily on affordability,” Yun said. “There is no indication that rates will ease anytime soon.”

The top 10 areas with the highest year-over-year price gains were made up of mid-sized and small-sized markets, including:

  1. Punta Gorda, Florida (34.4%)
  2. Ocala, Florida (33.8%)
  3. Ogden-Clearfield, Utah (30.8%)
  4. Lakeland-Winter Haven, Florida (30.1%)
  5. Decatur, Alabama (28.9%)
  6. Tampa-St. Petersburg-Clearwater, Florida (28.8%)
  7. Fort Collins, Colorado (28.4%)
  8. North Point-Bradenton-Sarasota, Florida (28.0%)
  9. Myrtle Beach-Conway-North Myrtle Beach, NC-SC (28.0%)
  10. Salt Lake City, Utah (27.9%)

“Traditionally, houses in these markets were considered relatively cheap, but with recent migration trends, prices have increased significantly,” Yun said. “As more and more families move to various regions, we could see some surprising markets on our top 10 list. Price gains in many smaller tertiary towns now exceed those in more expensive primary and secondary markets. This is due to buyers seeking less expensive housing and also the result of more opportunities to work from home, making relocation to smaller markets possible.”

The 10 most expensive markets were in California, including:

  1. San Jose-Sunnyvale-Sta. Clara, California ($1,875,000; 25%)
  2. San Francisco-Oakland-Hayward, CA ($1,380,000; 15%)
  3. Anaheim-St. Ana-Irvine, Calif. ($1,260,000; 26%)
  4. Urban Honolulu, Hawaii ($1,127,900; 19.9%)
  5. San Diego-Carlsbad, Calif. ($905,000; 18.5%)
  6. Boulder, Colorado ($859,100; 18.2%)
  7. Los Angeles-Long Beach-Glendale, CA ($792,500; 13.1%)
  8. Seattle-Tacoma-Bellevue, Wash. ($746,200; 14.2%)
  9. Naples-Immokalee-Marco Island, Fla. ($745,000; 24.3%)
  10. Denver-Aurora-Lakewood, Colorado ($662,200; 19.4%)

With sustained price appreciation and higher mortgage rates, affordability deteriorated significantly in the first quarter of 2022. The monthly mortgage payment on a typical existing single-family home with a 20% down payment rose to $1,383, up 30% from a year ago. Families typically spent nearly 20% of their income on mortgage payments, up from 14.2% a year ago.

“The decline in affordability is still the most problematic for first-time buyers, who don’t have a home to fall back on, and it also remains a challenge for mid-income prospective buyers,” Yun said.

During the first quarter, buying a home was considered unaffordable for a first-time buyer intending to purchase a typical home. The mortgage payment on a 10% down payment on a typical first home worth $313,000 has increased to $1,363. That’s a 30% increase from a year ago.

First-time home buyers typically spent 28.4% of their household income on mortgage payments, making buying a home unaffordable. A mortgage is considered unaffordable if the monthly payment – ​​principal and interest – is more than 25% of family income.

A family needed at least $100,000 to afford a 10% down payment mortgage in 27 markets, up from just 20 markets in Q4 2021. However, a family needed less than $50,000 to afford a home in 63 markets, compared to 81 markets in the previous period. trimester.

To read the full report, click here.

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30-year mortgage rates drop slightly, halting sharp rise https://sendika12.org/30-year-mortgage-rates-drop-slightly-halting-sharp-rise/ Sat, 30 Apr 2022 07:00:00 +0000 https://sendika12.org/30-year-mortgage-rates-drop-slightly-halting-sharp-rise/ 30-year mortgage rates drop slightly, halting sharp rise After climbing for nearly eight straight weeks, US mortgage rates took a breather this week, according to a widely watched survey. The most popular mortgage rate in the United States, the 30-year mortgage, remained virtually the same. It generally rises and falls alongside Treasury yields, which fell […]]]>

30-year mortgage rates drop slightly, halting sharp rise

After climbing for nearly eight straight weeks, US mortgage rates took a breather this week, according to a widely watched survey.

The most popular mortgage rate in the United States, the 30-year mortgage, remained virtually the same. It generally rises and falls alongside Treasury yields, which fell this week as investors worried about worsening COVID-19 cases and lockdowns in China, says George Ratiu, senior economist at Realtor.com. Such events could further clog supply chains that drive up the cost of household goods.

“Inflation is likely to run at a faster pace for longer than expected, which will keep pressure on medium-term mortgage rates,” Ratiu said.

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30 Year Fixed Rate Mortgages

The average rate for a 30-year fixed-rate mortgage stabilized at 5.10% this week, down from 5.11% a week earlier, Freddie Mac reported Thursday. A year ago at this time, the rate of 30 averaged 2.98%.

Even though mortgage rates are higher than they were last year, historically they’re not as high as they used to be, says Nadia Evangelou, senior economist at the National Association of Realtors.

At the start of 2002, for example, the average 30-year fixed rate loan averaged around 7%.

This week’s rate pause comes just ahead of a crucial two-day Federal Reserve meeting where policymakers are expected to raise the benchmark interest rate for the second time this year amid runaway inflation.

Fed Chairman Jerome Powell told an International Monetary Fund seminar last week that a half-percentage-point hike would be “on the table” at the Fed’s policy meeting in may. In March, the group raised the federal funds rate by a quarter of a percentage point.

“It’s appropriate in my view to go a little faster,” Powell said during the meeting.

The central bank is also poised to start trimming the huge portfolio of US Treasuries and mortgage-backed securities it acquired during the pandemic to keep borrowing costs down and the buzz of the economy humming. ‘economy.

15-year fixed rate mortgages

The 15-year fixed-rate mortgage is now averaging 4.4%, down from 4.38% last week, according to Freddie Mac. Last year at this date, the 15-year rate was 2.31%.

Borrowers with 15-year mortgages generally pay lower overall interest charges and repay their loans faster than homeowners with 30-year mortgages.

But the shorter loan term means borrowers will make higher monthly payments. This can pinch homeowners already facing higher costs for everyday items like food, gas and housing.

“A typical borrower’s principal and interest payment was $387 more than March 2021,” said Edward Seiler, associate vice president of the Mortgage Bankers Association. “Rapid price appreciation, sky-high inflation, low inventories and mortgage rates now two percentage points higher than last year are all headwinds for the housing market in the months ahead, particularly for first-time buyers.

5 Year Adjustable Rate Mortgages

The five-year variable-rate mortgage rate averaged 3.78% this week, down from 3.75% previously. Last year at this time, the 5-year ARM averaged 2.64%.

With a 5/1 ARM, the interest rate is fixed for the first five years, then adjusts annually—sometimes up sharply—for the rest of the time you have the loan.

ARMs, with their lower initial rates than longer loans, are becoming more attractive to borrowers financing near-record amounts as home prices rise. Their share of mortgage applications rose to 9.3% last week, from 3.4% this time last year and the highest since 2019, according to the MBA.

People might decide to refinance after the initial rate cuts end, if mortgage rates go down in the future.

A weaker housing market ahead

Recent rate hikes are clouding the housing market.

Amid higher borrowing costs and burning home prices, some potential buyers are taking pause.

Mortgage applications fell 8.3% last week from the previous week, the lowest level since 2018, the Mortgage Bankers Association reported this week.

“The recent decline in purchase requests is an indication of potential weakness in home sales in the months ahead,” said Joel Kan, associate vice president of economic and industry forecasting at the MBA.

This could be good news for budding buyers who are struggling to find a home in a fiercely competitive environment.

For now, homebuyers are coping with higher costs and lack of supply by switching to variable rate mortgages and staying away from expensive cities in favor of more affordable suburbs, says Sam Khater , chief economist at Freddie Mac.

“We expect lower demand to slow house price growth to a more sustainable pace later this year,” he said.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Scorpio Gold – Principal loans in the amount of USD 450,000 https://sendika12.org/scorpio-gold-principal-loans-in-the-amount-of-usd-450000/ Fri, 29 Apr 2022 15:09:16 +0000 https://sendika12.org/scorpio-gold-principal-loans-in-the-amount-of-usd-450000/ VANCOUVER, BC – Scorpion Gold Corporation (‘Scorpio Gold‘ or the ‘Company’) (TSX-V:SGN) announces that it has obtained bridge loans (the ‘Loans’) from Ian Dawson and Bruce Dawson (collectively, the “Lenders”) for the total principal amount of $450,000, payable on demand, which bear interest at a rate of 123/8% per annum, compounded monthly. The Company provided […]]]>

VANCOUVER, BCScorpion Gold Corporation (‘Scorpio Gold‘ or the ‘Company’) (TSX-V:SGN) announces that it has obtained bridge loans (the ‘Loans’) from Ian Dawson and Bruce Dawson (collectively, the “Lenders”) for the total principal amount of $450,000, payable on demand, which bear interest at a rate of 123/8% per annum, compounded monthly. The Company provided promissory notes to the lenders as evidence of the loans. The purpose of the loans is to ensure that the Company has sufficient liquidity to meet its general working capital needs.

The Lenders are related parties of the Company by virtue of being directors of the Company and therefore the Loans constitute a “related party transaction” for the purposes of Multilateral Instrument 61-101 minority security holders in Special Transactions (“MI 61-101”). There has been no material change in the percentage of the Company’s outstanding securities held individually by the lenders as a result of the loans. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements under NI 61-101 with respect to loans, relying on sections 5.5(a) and 5.7(1) (a) of NI 61-101, respectively, as the fair market value of the loans does not exceed 25% of the Company’s market capitalization determined in accordance with NI 61-101. The Company’s Board of Directors has approved the loans pursuant to consent resolutions, with the lenders declaring their interest and abstaining from voting on the consent resolutions. No special committee has been established with respect to the loans, and no materially contrary views or abstentions have been expressed or made by any director of the Company with respect thereto.

Contact:

Chris Zerg

President and CEO

Tel: (775) 753-4778

Email: czerga@scorpiogold.com

Website: www.scorpiogold.com

No more TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding the Company. By their nature, forward-looking statements are subject to a variety of factors that could cause actual results to differ materially from those suggested by the forward-looking statements. In addition, forward-looking statements require management to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that forward-looking statements will not prove to be accurate, that management’s assumptions may not be correct, and that actual results may differ materially from such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.

In general, forward-looking statements can be identified by the use of terms such as “anticipate”, “will”, “expect”, “may”, “continue”, “could”, “estimate”, “expect ‘, ‘plan’, ‘potential’ and similar expressions. Forward-looking statements contained in this press release may include, but are not limited to, the use of funds for loans. These forward-looking statements are based on a number of assumptions which may prove to be incorrect.

The forward-looking statements contained in this press release are made as of the date hereof or as of the dates specifically referenced in this press release, as the case may be. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements contained or incorporated in this press release. All forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

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Scorpio Gold – Capital loans of US$450,000 https://sendika12.org/scorpio-gold-capital-loans-of-us450000/ Thu, 28 Apr 2022 21:09:45 +0000 https://sendika12.org/scorpio-gold-capital-loans-of-us450000/ Get instant alerts when news breaks on your stocks. Claim your one week free trial for StreetInsider Premium here. VANCOUVER, BC /ACCESSWIRE/April 28, 2022/ Scorpion Gold Corporation (“Scorpio Gold“or the”Company“) (TSX-V:SGN) announces that it has obtained bridge loans (the “Loans“) by Ian Dawson and Bruce Dawson (collectively, the “Lenders“) in the aggregate principal amount of […]]]>

Get instant alerts when news breaks on your stocks. Claim your one week free trial for StreetInsider Premium here.


VANCOUVER, BC /ACCESSWIRE/April 28, 2022/ Scorpion Gold Corporation (“Scorpio Gold“or the”Company“) (TSX-V:SGN) announces that it has obtained bridge loans (the “Loans“) by Ian Dawson and Bruce Dawson (collectively, the “Lenders“) in the aggregate principal amount of USD 450,000, payable on demand, which bears interest at the rate of 123/8% per year, monthly capitalization. The Company provided promissory notes to the lenders as evidence of the loans. The purpose of the loans is to ensure that the Company has sufficient liquidity to meet its general working capital needs.

The Lenders are related parties of the Company by virtue of being directors of the Company and therefore the Loans constitute a “related party transaction” for the purposes of NI 61-101. Protection of holders of minority securities in special transactions (“MI 61-101“). There has been no material change in the percentage of the Company’s outstanding securities held individually by the lenders as a result of the loans. The Company relies on exemptions from formal valuation requirements and minority shareholder approval under NI 61-101 in respect of the loans, based on sections 5.5(a) and 5.7(1)(a) of NI 61-101, respectively, as the fair market value of the loans does not exceed 25% of market capitalization as determined in accordance with NI 61-101 The Company’s Board of Directors has approved the loans pursuant to consent resolutions, with the lenders declaring their interest and abstaining to vote on the resolutions by consent No special committee has been established with respect to the Loans, and no materially adverse views or abstentions have been expressed or formulated by any director of the Company with respect thereto.

ON BEHALF OF COUNCIL

SCORPION GOLD CORPORATION

Chris Zerg
President and CEO
Tel: (775) 753-4778
E-mail: [email protected]
Website: www.scorpiogold.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements regarding the Company. By their nature, forward-looking statements are subject to a variety of factors that could cause actual results to differ materially from those suggested by the forward-looking statements. In addition, forward-looking statements require management to make assumptions and are subject to inherent risks and uncertainties. There is a significant risk that forward-looking statements will not prove to be accurate, that management’s assumptions may not be correct, and that actual results may differ materially from such forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.

Generally, forward-looking statements can be identified by the use of terms such as “anticipate”, “will”, “expect”, “may”, “continue”, “could”, “estimate”, “expect”. , “plan”, “potential” and similar expressions. Forward-looking statements contained in this press release may include, but are not limited to, the use of funds for loans. These forward-looking statements are based on a number of assumptions which may prove to be incorrect.

The forward-looking statements contained in this press release are made as of the date hereof or as of the dates specifically referenced in this press release, as the case may be. Except as required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements contained or incorporated in this press release. All forward-looking statements contained in this press release are expressly qualified by this cautionary statement.

THE SOURCE: Scorpion Gold Corporation

See the source version on accesswire.com:
https://www.accesswire.com/699353/Scorpio-Gold-Loans-in-Principal-Amount-of-US450000

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Amount invested in a joint venture project as promoter and investor and not as financial debt: NCLAT https://sendika12.org/amount-invested-in-a-joint-venture-project-as-promoter-and-investor-and-not-as-financial-debt-nclat/ Sat, 23 Apr 2022 07:15:00 +0000 https://sendika12.org/amount-invested-in-a-joint-venture-project-as-promoter-and-investor-and-not-as-financial-debt-nclat/ the National Company Law Appeal Tribunal (“NCLAT”) Main bench composed of Judge Anant Bijay Singh (Judicial Member) and Ms Shreesha Merla (Technical Member), while adjudicating on an appeal brought under section 61(3) of the Insolvency and Bankruptcy Code, 2016 (“IBC”) in the matter of M/s Jagbasera Infratech Pvt. Ltd v Rawal Variety Construction Ltd., ruled […]]]>

the National Company Law Appeal Tribunal (“NCLAT”) Main bench composed of Judge Anant Bijay Singh (Judicial Member) and Ms Shreesha Merla (Technical Member), while adjudicating on an appeal brought under section 61(3) of the Insolvency and Bankruptcy Code, 2016 (“IBC”) in the matter of M/s Jagbasera Infratech Pvt. Ltd v Rawal Variety Construction Ltd., ruled that the amount invested in a joint venture project as “promoter” and “investor” does not fall within the definition of “financial debt” within the meaning of Article 5(8) of the IBC . The order was placed on 04.04.2022.

Background Facts

The appeal was filed by M/s Jagbasera Infratech Pvt. Ltd (“Appellant/Financial Creditor”), challenging the order of 11.12.2018 issued by the National Company Law Tribunal, Chandigarh Bench, in CP(IB) No.273/CHD/HP/2018. By the order under appeal, the NCLT, Chandigarh Bench dismissed the Appellant’s petition under Section 7 of the IBC, for initiating the Corporate Insolvency Resolution Process (“CIRP”) ) against M/s Rawal Variety Construction Ltd. (“Respondent/Corporate Debtor”) and had observed the following:

“20. The term “grantee” is defined in paragraph (d) of article 2 of the RERA law. It is said that the beneficiary in relation to a real estate project means the person to whom a land, apartment or buildings, as the case may be, has been allocated, sold (whether in full ownership or on lease) or otherwise transferred by7 the developer, and includes the person who subsequently acquires said allotment by sale, transfer or otherwise, but does not include a person to whom said land, apartment or building, as the case may be, is given on rent. We note that in the circumstances, the applicant can be considered as an assignee under the RERA law. As a promoter, the applicant is also interested in carrying out the project to be marked for the purposes of the company and cannot be an awardee at all. »

The appellant’s claims

The Appellant argued that it entered into a Memorandum of Understanding and a Joint Venture Agreement with the Respondent on 09.28.2011 and 02.27.2012 respectively. Between 21.10.2011 and 14.05.2018, the Appellant paid an amount of Rs. 4,21,37,850/- to the Respondent, however, the latter failed to return the said amount. Therefore, default in repayment falls within the definition of “financial debt” within the meaning of Article 5(8) of the IBC.

It has further been argued that the Appellant is a “Developer” and that he is interested in the forward sale of apartments as part of the Respondent’s real estate project. The Appellant’s investment was a forward sale or purchase contract having the commercial effect of a loan. It was argued that the amount was disbursed as consideration for the time value of money and therefore the appellant meets all the essential requirements to be a “financial creditor” under section 5 (7 ) of the IBC. Given that the Project should have been completed by 31.12.2013 at the latest, and that there is an acknowledged default, the Respondent owes it the amount lent which became due after the date of default on 31.12.2013.

The Respondent’s Arguments

The Respondent argued that, under the terms of the Memorandum of Understanding, the Appellant should bear the cost of the land. It was further alleged that the Appellant is carrying on a forward selling business through a purchase agreement and has invested an amount of Rs.4,21,37,850/- in his capacity as a “promoter” only . Since the Appellant is admittedly a “promoter”, the Appellant does not fall within the definition of “financial creditor” under Section 5(7) of the IBC and the petition under Section 7 was properly dismissed.

Publish

Whether the appellant who invested in the real estate joint venture project as a “developer” can fall within the definition of “financial creditor” under IBC Section 5(7)?

NCLAT Decision

The NCLAT Bench observed that, pursuant to the Memorandum of Understanding, the Appellant is a “developer” seeking to develop the land and build the studio, club, jogging track, stores and other amenities thereon. The Appellant had entrusted the Project to the Respondent who is presented as the “Developer” in the said memorandum of understanding and the joint venture project was to be launched and promoted on behalf of the Appellant.

It was further observed that the MoU specifies that the “promoter” is authorized to borrow in its own name from banks or financial institutions for the project. There will be no liability on the promoter for repayment of loans or interest. The Chamber found that a reading of the Memorandum of Understanding and the Joint Venture Agreement shows that the relationship between the Appellant and the Respondent is that of a landowner and developer and, further, the amount invested by the appellant for the completion of the project does not qualify as a “financial debt” under section 5(8) of the IBC. The nature of the transactions between the appellant and the respondent does not fall within the definition of “recipient”.

The Chamber also relied on the judgment rendered in Mukesh N. Desai vs. Piyush Patel & Ors., Society Appeal (AT) (Ins) No. 780/2020, by NCLAT itself in which it was ruled as follows:

“15. The memorandum of understanding entered into is an agreement of reciprocal rights and obligations. We are satisfied that both parties being “joint development partners” who have entered into a kind of consortium to develop the land in question and to any breach of the terms of the contract, the Section 7 application filed under the Code would not stand as the amount cannot be construed as a “financial liability” as there is no sum(s) ) i.e. due, assigned or transferred in accordance with the provisions of Article 5(8) of the Code. residual gain, the amount invested in the land cannot be considered a “financial debt” as defined under Article 5(8) of the Code…”

The Chamber observed that the amount invested in the ‘Joint Venture Project’ by the Appellant in his capacity as ‘Promoter’ and ‘Investor’ does not fall within the scope of the definition of ‘Financial Debt’ as defined in s. 5(8) BAC and, therefore, dismissed the appeal.

Case title: M/s Jagbasera Infratech Private Ltd. against Rawal Variety Construction Ltd., Company Appeal (AT) (Insolvency) No.150 of 2019.

Counsel for the Appellant: Adv. Dr. Sumant Bharadwaj, Adv. Vedant Bharadwaj and Adv. Mridula Ray Bharadwaj.

Counsel for Respondent #1: Adv. Arihant Goyal.

Click here to read/download the judgment

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Royal family: The insane amount of money Prince George and Princess Charlotte’s nanny earns https://sendika12.org/royal-family-the-insane-amount-of-money-prince-george-and-princess-charlottes-nanny-earns/ Sat, 16 Apr 2022 07:00:00 +0000 https://sendika12.org/royal-family-the-insane-amount-of-money-prince-george-and-princess-charlottes-nanny-earns/ Prince George, Princess Charlotte and Prince Louis are the latest in a long line of young royals to additionally benefit from a live-in nanny. While the trio’s parents, the Duke and Duchess of Cambridge, are known to be very active when it comes to their children, it’s a good idea for the couple to take […]]]>

Prince George, Princess Charlotte and Prince Louis are the latest in a long line of young royals to additionally benefit from a live-in nanny. While the trio’s parents, the Duke and Duchess of Cambridge, are known to be very active when it comes to their children, it’s a good idea for the couple to take extra help which can ease the pressures that come with their schedules. busy work.

Maria Teresa Turrion Borrallo has been the Cambridge children’s nanny since each was small, having started working for the family eight years ago when Prince George was a few months old in 2014.

The famous college where she studied is widely regarded as one of the best institutions in the world, as it equips its graduates with extremely successful and high-paying jobs, working for everyone from celebrities to royals. .

Prince William sang songs from this popular band to Prince George as a baby to put him to sleep



Maria Teresa Turrion Borrallo studied at Norland College

Maria is originally from Spain heralds of the city of Palencia. She received her formal education at the prestigious Norland College, located in Bath.

The college’s website reads, “Norland provides world-class training for those who aspire to become top child care professionals.”

To be accepted onto the £15,000 a year course you must have at least three Cs at A level and be able to show a passion and commitment to caring for young children. Although it sounds easy enough, the college only accepts about 100 students per year.

The subjects taught at the school have previously been described as a cross between “Mary Poppins and James Bond”, as students will learn everything from self-defense, martial arts and getaway driving.



Max Momby/Indigo/Getty Images
Maria Teresa Turrion Borrallo has worked for the family since 2014

When students graduate after four years, they are sure to be excited about the future opportunities that await them, as Norland nannies are always in high demand.

According to FEMAIL, newly qualified nannies can earn up to £42,000 for a non-residential role, while some earn up to £120,000 after a few years of experience. This attractive salary also includes the benefits of designer handbags, overseas travel, and luxurious accommodations.

Principal of the college, Dr Janet Rose, said: “Among many traits, nannies at Norland must be loving, kind, honest, creative, practical, responsible, organized and willing to learn and continually improve in order to do their best for the families and young children they work with.

“We are not looking for in-depth knowledge of babies and young children because we are going to teach them that. Instead, we are looking for what we cannot teach – an absolute commitment to being the person who changes the world by shaping the lives of the children they work with.

Do you think we should cover a story? Email rebecca.russell@reachplc.com.

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Amount disbursed by NBFC on oral agreement not covered by financial debt: NCLT Kolkata https://sendika12.org/amount-disbursed-by-nbfc-on-oral-agreement-not-covered-by-financial-debt-nclt-kolkata/ Wed, 13 Apr 2022 16:20:43 +0000 https://sendika12.org/amount-disbursed-by-nbfc-on-oral-agreement-not-covered-by-financial-debt-nclt-kolkata/ the NCLT Kolkata Bench made up of Shri Rajasekhar VK (Judicial Member) and Shri Balraj Joshi (Technical Member) while deciding a petition under section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), entitled Developers Narendra & Fincon Pvt. Ltd v Vinline Engineering Pvt. Ltd., held that a disbursement made by a non-banking financial institution […]]]>

the NCLT Kolkata Bench made up of Shri Rajasekhar VK (Judicial Member) and Shri Balraj Joshi (Technical Member) while deciding a petition under section 7 of the Insolvency and Bankruptcy Code, 2016 (“IBC”), entitled Developers Narendra & Fincon Pvt. Ltd v Vinline Engineering Pvt. Ltd., held that a disbursement made by a non-banking financial institution (“NBFC”) on a verbal agreement cannot be interpreted as the existence of a financial debt, when there is nothing in the file to show that was disbursed as a loan. The motion was dismissed by the Chamber to see an order dated 23.02.2022.

Facts of the case

Developers Narendra & Fincon Pvt. ltd. (“Financial Creditor”) being a Non-Banking Financial Company (NBFC) was approached by Vinline Engineering Pvt. (“Corporate Debtor”) for financial assistance amounting to Rs. 10,00,000/- for business use. An oral agreement was reached between the parties whereby the finance creditor would pay Rs 10,000,000 to the corporate debtor on an interest rate of 16% per annum from the date of disbursement.

On 08.09.2015, the Financial Creditor transferred the principal amount to the Debtor Company. The debtor company had paid Rs. 5,82,136/- to the Financial Creditor for interest due from 08.09.2015 to 31.03.2019. However, the debtor company did not repay the principal despite several verbal requests from the financial creditor.

Subsequently, on 18.03.2020, the financial creditor had filed a petition before NCLT Kolkata Bench (“Adjudication Authority”) under Section 7 of the IBC, requesting the initiation of a resolution process insolvency proceedings (“CIRP”) against the corporate debtor, for default on the amount of the loan.

Arguments on behalf of the financial creditor

The finance creditor’s lawyer argued that the latter had disbursed a short term loan amounting to Rs. 10,00,000/- to the Corporate Debtor on an interest rate of 16% per annum. The said loan was renewed for an amount of Rs. 11,00,000/- at the request of the Debtor Company. After making a payment of Rs. 5,82,136/- on interest due from 08.09.2015 to 31.03.2019, the Debtor Company failed to repay the principal and additional interest to the Finance Creditor. The date of default was 01.04.2019 and the amount in default was Rs. 11,46,850/- including interest.

The lawyer for the financial creditor also pointed out that the debtor company had filed TDS on interest with the income tax department up to March 2019 and this is reflected in Form No. 26AS obtained from TRACES from the income tax department.

Observations made by the contracting authority

The contracting authority observed that a review of bank statements reveals that an amount of Rs. 10,00,000/- was disbursed by the Financial Creditor to the Corporate Debtor on 08.09.2015. However, the disbursement cannot be interpreted as the existence of a financial debt since the written terms and conditions between the parties are not before the contracting authority and there is nothing in the file to show that this disbursement was a loan.

The procuring authority relied on the RBI guidelines on Code of Fair Practices for NBFCs, dated 2013.02.18, in which it was stated that NBFCs shall convey in writing to the Borrower, in the vernacular as understood by the Borrower by means of a sanction letter or otherwise , the amount of the sanctioned loan and the terms and conditions including the annualized interest rate and the method of application thereof and keep the borrower’s acceptance of these terms and conditions on file. It has been observed that RBI circulars have the force of law and are well recognized by law. Therefore, it was mandatory on the part of the financial creditor, being an NBFC, to keep the terms and conditions recorded in writing.

The judicial authority also relied on the judgment of the Supreme Court in Phoenix Arc Pvt. Ltd Vs. Spade Financial Services Ltd. &Ors., Civil Appeal No. 2842 of 2020, in which it was held that for the implementation of a successful insolvency regime and to prevent any person from taking undue advantage, the true nature of transactions must be discovered, in accordance with the IBC.

The Judgment Authority was of the opinion that the Financial Creditor failed to establish the nature of the transaction between the parties. It further observed that the deduction of TDS is not sufficient to conclude that the transaction in question is a Financial Debt.

Decision of the contracting authority

The petition under section 7 of the IBC was dismissed with freedom for the financial creditor to pursue other remedies available under the law.

Case title: Narendra Promoters & Fincon Private Limited v Vinline Engineering Private Limited, CP (IB) No 749/KB/2020

Advice from the financial creditor: Adv. Sankarsan Sarkar and Adv. Tanvi Luhariwala.

Click here to read/download the order

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Glenmark redeems bonds totaling US$75 million principal amount https://sendika12.org/glenmark-redeems-bonds-totaling-us75-million-principal-amount/ Fri, 08 Apr 2022 07:00:00 +0000 https://sendika12.org/glenmark-redeems-bonds-totaling-us75-million-principal-amount/ On April 7, 2022, Glenmark Pharmaceuticals repurchased an aggregate principal amount of $75,000,000 of the $200,000,000 of 2.00% Resettable Equity Linked Securities due 2022 (ISIN: XS1426780125; Common Code: 142678012) (Bonds) (Redemption). The Repurchase was effected by way of market purchases via The Hongkong and Shanghai Banking Corporation. The Bonds are listed on the […]]]>

On April 7, 2022, Glenmark Pharmaceuticals repurchased an aggregate principal amount of $75,000,000 of the $200,000,000 of 2.00% Resettable Equity Linked Securities due 2022 (ISIN: XS1426780125; Common Code: 142678012) (Bonds) (Redemption).

The Repurchase was effected by way of market purchases via The Hongkong and Shanghai Banking Corporation.

The Bonds are listed on the Singapore Exchange Securities Trading.



Settlement and cancellation of the redeemed Bonds was completed on April 7, 2022. Following cancellation, the outstanding principal amount of the Bonds will be USD 750,000.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Property buyers hide record amount in clearing accounts https://sendika12.org/property-buyers-hide-record-amount-in-clearing-accounts/ Tue, 05 Apr 2022 19:00:00 +0000 https://sendika12.org/property-buyers-hide-record-amount-in-clearing-accounts/ A borrower with a $1 million home loan with $100,000 in their clearing account could save more than $10,000 in interest over five years, according to RateCity, which monitors loan rates. The calculations are based on a 25-year home loan with principal and interest, where the customer pays a 0.25 percentage point premium rate for […]]]>

A borrower with a $1 million home loan with $100,000 in their clearing account could save more than $10,000 in interest over five years, according to RateCity, which monitors loan rates.

The calculations are based on a 25-year home loan with principal and interest, where the customer pays a 0.25 percentage point premium rate for the offset account, in addition to approximately $200 in annual fees. It also takes into account the increase in the cash rate to 1.75% by February 2024.

The higher rates

Tindall says the buffer provided by a clearing account reduces interest payments, “which is particularly beneficial when interest rates are on the rise.”

“A buffer is also your safety net when your life is throwing a curveball,” says Tindall. “You may fall ill and be unable to work, your roof may leak, or your child may be accepted into a school that costs an arm and a leg.”

Some banks charge higher interest rates on clearing accounts. For example, the ABC’s Basic Variable Rate Loan, with no clearing account, offers rates starting at 2.19% and no ongoing fees. The lowest bank-advertised rate for a clearing account is 3.85%, with an annual fee of $395, according to RateCity.

ANZ charges 2.19% for its basic home loan, but the lowest variable rate for an offset account is 2.99% and an annual fee of $120.

An ANZ borrower with a $1 million homeowner offset loan of 2.99% and $100,000 offset during the 25-year loan will pay almost $156,000 more interest over five years than a borrower at the bank’s variable base rate of 2.19. percent.

“Our research shows that in the case of ANZ, even offsetting $100,000 in a $1 million loan, you’re set back thousands of dollars,” Tindall says.

Other lenders, including Macquarie Bank, charge the same variable rate for home base and offset loans. But its compensation has an annual fee of $248.

The same borrower in a Macquarie offset account option instead of the Macquarie base variable rate would save more than $17,000 over five years.

“When it comes to choosing a home loan, the rate is key, especially for borrowers with larger loans,” says Tyndall.

Offset accounts deduct the value of any savings account tied to a mortgage before calculating monthly interest.

how they work

Interest can be reduced by paying regular payments or lump sums, such as bonuses, into a savings or checking account.

Some banks allow borrowers to open multiple clearing accounts, choosing to allocate one account for bills and incurred expenses, another for current expenses.

An offset provides more flexibility and control. The money from an offset is yours. Additional payments belong to your lender.

Richard Whitten, Financial Writer, Funder

These accounts offset your loan balance using your home’s existing interest rate, which is usually much higher than the average savings account.

For example, the average standard variable loan owner-occupied, principal and interest of 3.22% compares to a paltry 15 basis points paid by savings accounts at some banks.

This means that the borrower with an offset account effectively earns gross interest on the offset mortgage because he does not earn interest that is taxable income. On the other hand, interest on savings in an account not linked to a mortgage is taxable.

According to Canstar, which monitors consumer markets, the need for a buffer is underscored by its survey which finds around one in three mortgage borrowers are struggling to make ends meet. About 14% are at their limit and 19% say that a weekly increase in the cost of living of $100 would put them in financial difficulty.

Alternative

Richard Whitten, editor at Funder, which monitors the financial markets, says an offset account offers more flexibility than making additional mortgage payments because of continued access to money.

Whitten says, “An offset provides more flexibility and control. The money from an offset is yours. Additional payments belong to your lender.

Whitten says some savers maximize their compensation by depositing all of their pay and then spending through a debit card, similar to how they might use a transaction account.

Financial adviser Jamieson says record savings rates mean there could be better uses for savings, such as buying investment property or investing in stocks, increasing the possibility of higher returns but at increased risk.

“Those with strong cash flow, say $3,000 more per month after typical expenses, might consider an alternative strategy for some of their money,” he says.

Funds in a clearing account could be used as a deposit for investment property.

Borrowers may also consider a withdrawal account, which is an additional loan feature, rather than a separate account.

Withdrawal facilities generally only allow access to funds contributed beyond minimum repayments and can often come with other restrictions, making it necessary to check terms and conditions with the lender.

The borrower can access funds in the account, but over time the amount available to withdraw usually decreases in proportion to the outstanding balance.

This caused confusion among borrowers who thought that the total amount could be viewed at any time.

Tax experts warn that the Australian Taxation Office closely monitors withdrawal facilities for investment mortgages used for personal purposes, such as buying a car.

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