Zhitong Financial APP, Sunshine Oil Sands (02012) announced that on May 12, 2022, the company signed an interest exemption agreement with the extension holder, who agreed to unconditionally and irrevocably waive the company's accrued interest from January 1, 2022 to December 31, 2022.
In accordance with the restitution and modification extension agreement reached between the parties on August 8, 2021, the total waived interest is US $31.529 million based on the outstanding amount (i.e. principal plus interest) at an annual interest rate of 10.0%.
With the exception of interest exemption, all other terms and conditions of the extension Agreement shall remain unchanged.
The Board is of the view that it is in the overall interest of the company and its shareholders to enter into an interest exemption agreement, as the interest exemption agreement will significantly reduce the company's liabilities and reduce the asset-liability ratio.