Notes to the Consolidated Financial Statements
For the year ended 31 December 2010
The ranges of effective interest rates (which approximate to contracted interest rates) on the Group’s borrowings are as follows:
Effective interest rate:
During the year ended 31 December 2010, the Group extinguished a bank loan and an other loan entered in the USA with an aggregate carrying amount of HK$848,712,000 in exchange for payments below their stated value. The amount of HK$220,072,000, representing excess of aggregate carrying amount over the cash settlement is recognised as an income from discounted payoff of borrowings in the consolidated income statement.
During the year ended 31 December 2009, in respect of floating-rate bank loans with aggregate carrying amounts of HK$845,557,000 at the end of the reporting period, the Group did not meet certain requirements of the loan facility which are primarily related to the debt service coverage ratios. Accordingly, the Group placed HK$61,521,000 into designated bank account and no immediate repayment of the bank loan was required.
Great Eagle Holdings Limited