GOVERMENT HOUSE HONG KONG.
MON 30 MAR 92 10:50
PG.23
attagliapahtua s
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Dividend Payments
39.
As is normal
22
commercial
practice, the Agreement.
confinas that the payment of dividends to Government may be
deferred to such an extent as the lenders of the project
debt may require.
payment of dividends
Lenders
are unlikely to agree to the
if to do SO
would put at risk the
ability of the AA to service its debt.
On this basis
dividends are likely
to begin to be paid, from 2005 by when
the project initial debt is due to bave been fully repaid.
Completion and Debt Service Undertakings
40.
Lenders to the AA will require an assurance from
Government either to put in all sums necessary to complete
the airport or to pay off the outstanding loans and interest
at an agreed date at which the project would be deemed to be
This is because lenders will be asked to lend
in
default.
оп the understanding that the revenues from the new airport
The lenders would,
will be used to service the debt.
therefore, find it
to unacceptable
accept
the
risk
of
non-completion of the airport.
41.
It
was considered
that an unqualified completion
guarantee
by Government
would
create an unacceptable
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