Hotel Equity Financing Solutions

Our company is a hotel and has been mortgaged to the bank. I would like to know if we can still raise funds in the form of equity pledge in this case?

Legally yes, but in practice It depends on the creditor's operation or evaluation, etc. First of all, legally, the mortgage should be the real estate of the hotel, which is the property of the hotel; the equity pledge should be that the hotel shareholders pledge their equity or shares as hotel shareholders as a guarantee. What is pledged is the property of the shareholders, without any conflict. However, from a practical perspective, the value of the equity depends on the value of the hotel. If the hotel's main assets have been mortgaged, the equity value will be relatively small; if the hotel's assets can also be reflected in trademarks, customer sources, brands, etc., then the equity There is still a certain value, so whether it can be used as a guarantee mainly depends on the creditor's recognition of the value of the equity.

Does hotel equity pledge require a legal person loan?

No. Hotel equity pledge does not require a legal person to have a loan. According to the relevant provisions of the "Company Law", the equity pledge of a limited company must meet the following conditions:

1. Pledge equity to other shareholders in the same company as creditors , unrestricted.

2. To pledge equity to creditors other than shareholders of the same company must be approved by more than half of the other shareholders, and the consent must be in writing, that is, in the form of a resolution of the shareholders' meeting.

I hold 50% of the shares in the hotel loan. I signed the loan and the legal person also signed it. If the loan is not repaid, will I be held responsible? I am a shareholder?

Shareholders are not legal persons and do not need to bear direct responsibility. They are loans at the company level and are repaid by the company. Shareholders are one of the owners of the company and must be jointly borne.

Can company equity be used as collateral for loans?

Company equity can apply for mortgage loans. Equity mortgage loan application process: 1. The equity borrower applies to the lending institution and presents relevant materials; 2. The equity borrower and the lender should sign a loan contract in writing, and both the pledger and the lender should sign a loan contract in writing. Enter into an equity pledge contract. The equity pledge contract can be concluded separately, or it can be a guarantee clause in the loan contract; 3. Within the agreed time after the equity pledge contract is signed, the equity parties must present the equity pledge contract to the equity pledge registration agency (equity issuance company) The registered industrial and commercial administrative department) handles the equity pledge registration, and hands the equity to the equity pledge registration agency for safekeeping within the time limit stipulated in the contract; 4. Apply for equity pledge registration and submit materials to the industrial and commercial administrative department; 1. "Equity Pledge Establishment Registration Application" signed or stamped by the applicant; 2. A copy of the shareholder list of the limited liability company recording the name of the pledger and the amount of capital contribution, or a copy of the joint-stock company held by the pledger Copy of the stock (both need to be stamped with company seal); 3. Pledge contract; 4. Copy of the qualification certificate of the pledger or pledgee or the identity certificate of the natural person (if the pledger or pledgee is a natural person, the certificate must be submitted in person) Signature, if it belongs to a legal person, affix the seal of the legal person, the same below); 5. Other materials required by the State Administration for Industry and Commerce, if the designated representative or *** is handled with the entrusted agent, the applicant's designated representative or *** should also be submitted *Proof of the same as the authorized agent. 5. The lender handles the loan in accordance with the loan contract and the relevant certification documents of the equity pledge; Note: The ownership of bonus shares and cash dividends distributed during the equity pledge period is stipulated in the pledge contract. Before the expiration of the debt performance period, both the pledger and the pledgee shall Bonus shares and cash dividends shall not be processed and shall be entrusted to the equity pledge registration institution for safekeeping. Cash dividends shall be calculated and paid by the equity pledge registration institution based on bank demand deposit interest rates. The legal basis is the Company Law.

What are the loan requirements for equity?

The application conditions for equity include independent legal person qualifications; compliance with national industrial policies; equity registration and custody by the Provincial Securities Registration Center; and other conditions.

The equity procedures are: apply for materials and sign a contract; handle equity pledge registration, and the equity will be kept by the equity pledge registration agency; handle loans.

Legal basis

Article 443 of the "People's Republic of China and Civil Code"

Where fund shares or equity are pledged, the pledge shall The right is established when the pledge is registered.

After the fund shares and equity are pledged, they may not be transferred, except with the agreement between the pledger and the pledgee. The price received by the pledger from the transfer of fund shares or equity shall be paid off the debt in advance or deposited with the pledgee.