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Technics fails to restrain Soilbuild Reit from calling on S$11.9m guarantee on lease payment

TECHNICS Oil & Gas has failed in its bid to restrain its landlord Soilbuild Business Space Reit to call on a S$11.85 million bank guarantee or security deposit which is equivalent to 18 months' rent in respect of the second year lease of the premises at 70 Loyang Way.

Soilbuild Reit has called on the beleaguered firm's bank guarantee which has since been paid by UOB to the Reit, said Technics in an announcement to the Singapore Exchange.

Last week, the offshore solutions provider had filed a writ of summons and injunction against Soilbuild Reit after the latter launched legal action claiming rent and other charges plus late interest payment up to the month of May 2016 under the lease agreement for the premises.

Soilbuild Reit had also sought to enforce the corporate guarantee provided by Technics.

Technics had been the guarantor for a tenancy held by Technics Offshore Engineering (TOE). Soilbuild Reit said Technics and TOE were "claiming unlawful conspiracy regarding the sale and leaseback transaction of 72 Loyang Way ... and are seeking injunctions to restrain any call by the trustee on the Bank guarantee".

The Reit manager denied the claims and said it intended to vigorously defend against the claims.

Technics stock closed at 8.8 Singapore cents on Wednesday, up 0.3 Singapore cent or 3.5 per cent.