ANNUAL%20REPORT%202015%20eng

Management Discussion and Analysis
Table 14. The Group’s historical capital expenditure for the periods indicated:
Year ended 31 December
2015 2014
USD’000 USD’000
CHPP 59 1,441
Water supply facility 124 2,391
Fleet management system — 1,023
Others 277 1,093
Total 460 5,948
Operating Lease Commitments
As at 31 December 2015, the Company had contracted obligations consisting of operating leases which totalled
approximately USD1.6 million due within one year. Lease terms range from one to five years, with fixed rentals.
Significant Investments Held
As at 31 December 2015, the Company did not hold any significant investments. Save as disclosed in this annual
report, the Company has no future plans for material investment or capital assets in the coming year.
Material Acquisitions and Disposals of Subsidiaries and Associated Companies
For the year ended 31 December 2015, the Company did not have any material acquisitions and disposals of
subsidiaries and associated companies.
Other and Subsequent Events
(a)
(b)
On 11 March 2016, the Group entered into the Deed of Termination and Release (the “DTR”) with EBRD,
FMO, and DEG (the “Parallel Lenders”) regarding the repayment of secured interest bearing borrowings.
Pursuant to the DTR, the Group shall endorse to the Parallel Lenders certain promissory notes issued
by Ministry of Finance (“MOF”) with total amount of approximately MNT105.6 billion, and in return the
obligations under the borrowings will be discharged in their entirety and the relevant security thereunder will
be released after 121 calendar days plus 2 business days from the signing of the DTR. Until the issuance of
the consolidated financial statements, the Group had completed the endorsement of promissory notes as
required by the DTR.
Pursuant to a temporary waiver letter granted by the Lenders of the BNP and ICBC Facility on 14 March
2016, the Group is due to repay principal installments of approximately USD36.8 million together with
applicable interest payment on 22 March 2016. As of the issuance of the consolidated financial statements,
the Group had neither made the payment to the Lenders nor been able to secure any waiver or forbearance
from the Lenders in this regard. As such, an event of default under the BNP and ICBC Facility has taken
place, which also constitutes an event of default under certain of the Group’s other indebtedness that
contain cross-default provisions, including the Senior Notes issued by the Group with a principal amount of
USD600 million due on 29 March 2017.
46
Annual Report 2015