There is some sentence in the clarification as my make a misleading;
So, I wish to correct to be as follows;
1. The USD 70 M under the SPA will be paid for the following purpose;
(a) To settle the IRIS Shareholders' Loan, as of the Closing Date, the Company is liable to pay back the Loan to IRIS as already recorded in the Books of the Company as Shareholders' Loan. There is no pending Loan between the Company and the Bank. But the Bank lend money to IRIS and IRIS re-lend this money to the Company, the Company, and the Shareholders, then, agree to be the guarantors by mortgaging the Company's properties and pledge the Shares. So, the Company has to pay back the Loan to IRIS and IRIS has to use this money to settle the Loan to the Bank in order to let the Bank release the mortgage and the Pledge to the Company and Shareholders respectively. This portion of money paid by Yunan directly to the Bank on behalf of the Company and IRIS. Under the Books of the Company, the IRIS Shareholders’ Loan will be zero, Yunan will become the creditor of the Company to replace IRIS as we may call YUNAN Shareholders’ Loan.
(b) The amount paid to the Bank will be deducted from 70 Million USD, the net amount will be paid the Shareholders (Sellers) as the price of the shares as Yunan buy from the Shareholders(Sellers). The Sellers want Yunan to split the Bank Drafts for the purchase price of the shares payable to the Shareholders(Sellers) into 2 drafts; and the amount as Yunan will pay to the Bank in Clause (a) also will be payable by the Bank Draft. In total the Bank Drafts as Yuanan has to prepare on the Closing Date will be 3 drafts as follows;
(i) 1st Draft; payable to the Bank as the same amount of IRIS Shareholders' Loan.
(ii) 2nd Draft; payable to IRIS ( Seller) at the amount of 24 Million USD
(iii) 3rd Draft; payable to POLAR as the net amount of (70 Million after 20% Deposit deducted) – amount in (i)- amount in (ii)
The Total Payment Amount of Yunan is 70 Mil. USD (including deposit 20%), no IRIS Shareholders' Loan,(mean no any other loan pending) Yunan will become the creditors of the Company by the same amount as Yunan pay to the Banks. (YUNAN Shareholders' Loan)
2. The Shares Price is only the amount paid to the Shareholders(Seller) [(amount in 1.(i)+(ii)], the amount paid to the Bank is not the Shares Price, as we try to make it clear for the tax purpose and the record of the share price of the Sellers’ books.
3. As the BANK is Standard Charter, so, the Sellers need Standard Charter Bank Draft, and require the copy in advance for verification; this is for the Bank immediately record the receipt of the Loan repayment and release the mortgage and the Pledge. As Yunan may keep contact with the Bank to make it as the Bank want.