This is a real Gem from the Financial Report...
Loan from Fortune Gems and Jewellery DMCC (Redeemable Notes) The company owes $14,111,755 (2016: $10,897,258), including capitalised interest to Fortune Gems and Jewellery DMCC secured over part of the mining assets of the company.
The loan agreement expired on 21 March 2016 and has not being formally renegotiated, nor has the lender sought as at the date of this report to recover its debt. The loan has continued on an informal basis with monthly interest accruing.
Interest accrued for the year ended 30 June 2017 was $4,016,555 and no repayment of the principal amount was made during the financial year then ended.
Should Fortune Gems and Jewellery DMCC demand repayment of the loan, the company does not have sufficient cash resources to repay the loan and may be forced to liquidate assets of the company or seek alternative financial arrangements.
- Ends.
Staggering that this is allowed to continue.
Add to My Watchlist
What is My Watchlist?
