Archive for the ‘BVI Company Loans’ Category

Paper company owned by BVI investors gets $250,000 grant

Friday, August 14th, 2009

Potsdam Specialty Paper Inc. received the $250,000 grant from Empire State Development Corp., and will use it to improve the management in the cash flow in the next months and to safeguard the jobs of 79 employees of the paper mill in Unionville, New York. The company is a new business venture owned by  Seafront Paper Ltd., a group of investors from the British Virgin Islands who bought the MeadWestvaco Corporation plant.

The Potsdam paper grant is part of $16.3 million funding announced by Empire State Development Corporation’s Board of Directors in NY aimed at retaining 699 existing jobs and creating 271 new jobs across the state. By words of company’s General Manager Ronald F. Charette, the grant will help them to get some cash flow and working capital.

He said that in recent months the BVI-owned plant has received $800,000 in low-interest loans. The paper mill was also recently recertified for inclusion in the state’s Empire Zone program, which implies substantial tax and investment incentives.

As the mill is now owned by BVI investors, it is considered to be a startup company, and the $250,000 grant has been awarded to cover initial startup and operating costs during the company’s first year of business.

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Guam gasoline trading company sues its former executives for loans to BVI company

Saturday, June 27th, 2009

On June 11, gasoline retail trading company South Pacific Petroleum Corp. (SPPC) has filed civil complaint against three of its former executives for the return of more than $3.2 million in allegedly unpaid loans. It is the fourth lawsuit against former SPPC CEO and President Brian Suhr, former Executive Vice President and Chief Operating Officer Michael Hahm, and SPPC director Gi Tae Kim.

SPPC alleged the defendants of breaking their fiduciary duties as SPPC executives by authorizing the loans to the BVI-registered Sherwood, most of which haven’t been paid back; now the company seeks the return of more than $5.6 million. In the last complaint it was stated that, at the time of these loans, Suhr, Hahm and G.T. Kim knew that it was “a remote British Virgin Islands shell corporation with little or no tangible assets.” Nevertheless they caused SPPC to make loans to the BVI company without taking any security in return.

Suhr and Hahm declined to comment these allegations. The other defendants of the lawsuit, which are listed as Sherwood stockholders and which could not be reached, are W. J. Kim, Jae Jyoon Rhim and Jin Hee Hung.

The three previous complaints alleged that Suhr, Hahm and Kim used the loans made from October 20, 2005 to June 2, 2008, to fund their other business ventures; the last filed lawsuit does not state the purpose what these loans were used for.

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London Town took three short-term loans from BVI company

Thursday, May 21st, 2009

An AIM-listed group London Town that operates 266 pubs because of some financial problems had to take three short-term working capital loans over the past 13 months. The company received three loans, totalling £6m, from the British Virgin Islands-registered Burac Invest and Trade, and it has been paying 10-15 per cent interest rates on these loans. On behalf of the Horizon Charitable Trust, this BVI company holds 48.4 per cent of the issued share capital of London Town.

London Town was established as a residential property developer. It came into the sphere of pub trade just in 2006 when it purchased 167 pubs for £94.7m from retired property investor.

The deal which was known as the first step in building London Town into a significant player in the pub industry, was funded through a £72.8m loan from Anglo Irish Bank, a £14m discounted bond issue and a £14.3m share placing. However, there is a drop in the pub industry now, so the acquisition along with three other smaller deals of London Town with the BVI company that followed in the next months, seems to be not in time.

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China Gengsheng Minerals, Inc. to receive $2.9 Million loan from Agricultural Bank of China

Wednesday, March 25th, 2009

China Gengsheng Minerals, Inc., a materials technology company in China, working through BVI-registered Gengsheng International, announced that one of its wholly-owned Chinese subsidiaries Henan Gengsheng Refractories Co. Ltd. , has signed a $2.9 mln short-term loan agreement with  Agricultural Bank of China’s Gongyi City branch, Henan Province.

Mr. Shunqing Zhang, Chairman and CEO of China Gengsheng Minerals, said in his comments that the proceeds from the loan will provide sufficient safety in a difficult economic environment. He also noted that, depending on the improvement in market condition, they are going to use the $2.9-million loan to start the production and shipment of the abrasives.

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