Jason Holdings seeking legal advice on DBS's letter of demand

SINGAPORE-BASED providers of timber flooring services, Jason Holdings Limited on Friday said its board of directors is seeking legal advice on a letter of demand sent by local lender DBS.

On Thursday, the company and its wholly owned subsidiary, Jason Parquet Specialist (Singapore) Pte Ltd, received a letter of demand from the bank's solicitors cancelling certain banking facilities granted by DBS to Jason Parquet Specialist.

DBS is demanding payment of about S$7.29 million.

This repayment amount was guaranteed by Jason Holdings, the group said in a filing to the local bourse.

"The letter stated that if payment of such sum is not made within seven days of the date of the letter of demand, the solicitors of DBS have been instructed to take such steps as may be necessary to protect DBS's interest, including the commencement of legal proceedings and the realisation of any security."

Shareholders of Jason Holdings and potential investors are advised to exercise caution when dealing in its shares, the group said, adding that it "will make the necessary announcements when there are material developments on this matter".