Facts:
Registered capital: US$1m
Paid-in capital: US$0.3m
Rest capital contribution: due within 1 month but Foreign Investor A unable to make
Foreign Investor A now requested a 2-month funding from Foreign Investor B to meet the capital call
Client Intention: lend with sufficient protection and right to exchange loan into shares of JV
Options:
#1: lend direct to Foreign Investor A with a pledge over shares of JV held by Foreign Investor A
#2: contribute instead of Foreign Investor A and accordingly subscribe relevant shares of JV that are supposed to issue to Foreign Investor A; call option to Foreign Investor A exercisable within 2 month of capital contribution
Questions: what's the real issue?
