STERLING GP-NEW (ASX: 01825) has issued an announcement regarding the early settlement of loans. According to the original loan agreement, SAL provided an initial advance to Santai amounting to approximately $4.2128 million USD (equivalent to HK$32.8599 million), bearing interest at an annual rate of 7%.
Pursuant to this agreement and a second agreement, SAL extended total financial assistance of approximately HK$33.5 million, also with an annual interest rate of 7%. Following recent negotiations with Santai and Mr. Choi, the group has successfully reached an agreement with them.
In addition to the scheduled repayments of HK$10 million, HK$3.3 million, HK$6 million, and HK$8 million on April 24, 2025, April 30, 2025, May 8, 2025, and May 15, 2025, respectively, Santai will make an additional early repayment covering the outstanding principal and accrued interest for the Santai advance and the two financial assistance facilities.
Under the terms of the loan agreements, repayments of principal and related interest at any time do not incur any penalty. The board is pleased to announce that on June 29, 2026, SAL, Santai, and Mr. Choi entered into a repayment agreement.
This agreement stipulates that Santai will make an early repayment of HK$30 million to the group on June 29, 2026. As per the repayment agreement, the parties have agreed that Mr. Choi will offset the outstanding principal and interest of the Santai advance and the financial assistance facilities against a HK$30 million loan receivable from SAL.
This offset will serve as the early repayment to SAL on behalf of Santai. The company believes that entering into this repayment agreement and receiving the early settlement is beneficial to the group's overall financial position and cash flow.
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