Narrative
Full Description
Project narrative
On October 30, 2008, Zhuzhou CSR Times Electric Co., Ltd. — a Chinese majority state-owned semiconductor and train manufacturer — entered into a £1,589,000 GBP loan agreement with Dynex Semiconductor Limited — an England and Wales-incorporated specialist high power semiconductor manufacturer headquartered in Lincoln, England and wholly-owned subsidiary and sole operating company of Dynex Power Inc., a Canada-incorporated company headquartered in England listed on the TSX Venture Exchange but 75% owned by Zhuzhou CSR Times Electric Co., Ltd. — for refinancing purposes. The loan carried a fixed interest rate of 8% and an maturity period of three years and a final maturity date of October 2011. The loan was unsecured. The proceeds were used by the borrower on October 30, 2008 to fully repay £1.4 million GBP of convertible loans that had been provided by two outgoing directors of the company, Mr. David Banks and Mr. Daniel Owen. In 2008, the borrower incurred £21,253 GBP interest expenses relating to the loan. In 2009, the borrower incurred £71,991 GBP interest expenses relating to the loan. The borrower repaid the loan in full on December 22, 2009.
Staff comments
1. Concurrent with the loan, on October 30, 2008, Zhuzhou CSR Times Electric Co. Ltd purchased a 75% equity stake in Dynex Power Inc. (a semiconductor company). 2. Dynex designed and manufactured high power bipolar semiconductors, high power insulated gate bipolar transistor (IGBT) modules, high power electronic assemblies and radiation hard silicon-on-sapphire integrated circuits (SOS IC’s). Its power products were used globally in power electronic applications including electric power transmission and distribution, renewable and distributed energy, marine and rail traction motor drives, aerospace, electric vehicles, industrial automation and controls and power supplies. Its integrated circuts products were used in demanding applications in the aerospace industry. Dynex Semiconductor Ltd was its only operating business and was based in Lincoln, England in a facility housing the fully integrated silicon fabrication, assembly and test, sales, design, and development operations.