HONG KONG, Nov. 2 /CNW/ - PACRIM INTERNATIONAL CAPITAL INC. (PCN: TSX)
("Pacrim") today announced the intended retirement of various loans previously
made by Pacrim to a number of companies in which Guy Lam, the Chairman and
Chief Executive Officer of Pacim, has an interest. Pacrim funded the loans in
order to allow the borrowing companies to develop investment opportunities in
the People's Republic of China to be subsequently offered for sale to Pacrim.
These opportunities have taken longer to develop than originally anticipated.
The loans presently total approximately Cdn. $22,064,969 of principal and
accrued interest and for the most part were due on November 1, 2007. The loans
are secured, part of the security consisting of the pledge of the outstanding
common shares of Pacrim International Capital Holdings Inc. ("PICH"), a
holding company owned by Mr. Lam with business interests in the People's
Republic of China. The loans will be retired by the transfer of a portion of
this security to Pacrim pursuant to a realization on the security.
Pacrim intends to engage an independent valuator to perform a valuation
of PICH. Once the valuation is completed, the principal and accrued interest
of the loans will be determined as of such time. A percentage will then be
calculated equal to such principal and interest amount (plus the cost of the
valuation) divided by the value of PICH as determined by the valuation. Such
percentage of the shares of PICH will be transferred to Pacrim in satisfaction
of the loans. The balance of the shares of PICH will be retained by Mr. Lam.
Following the settlement of the loans, Pacrim intends to file a business
acquisition report in accordance with National Instrument 51-102 - Continuous
Under Mr. Lam's direction Pacrim intends to continue to explore
investment opportunities in China.
Caution concerning forward-looking statements
Statements made in this news release, other than those concerning
historical financial information, should be considered forward-looking and
subject to various risks and uncertainties. Such forward-looking statements
are based on management's beliefs and assumptions regarding the information
currently available. The Company's actual results or developments could differ
materially from those expressed in the forward-looking statements. Factors
that could cause results or developments to differ include, among other
things, those expressed in the Company's filings or developments with Canadian
securities regulatory authorities. All information presented herein should be
read in conjunction with such filings.
For further information:
For further information: Cindy Fung, Acting Chief Financial Officer,
Pacrim International Capital Inc., Tel. 852.2526.1554