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Technics Oil & Gas to 'vigorously defend action' after Soilbuild Reit's claims of unpaid rent

MAINBOARD-listed Technics Oil & Gas on Thursday said that the company and its subsidiary have received a writ of summons from Soilbuild Reit claiming for rent and other charges plus late payment interest up to the month of May 2016 for its premises at 72 Loyang Way.

These add up to about S$2.19 million. Additionally, continuing arrears in rent and security deposit for the second year amounted to about S$11.8 million together with interest and legal costs.

The oil and gas solutions provider said that it is seeking to enforce the corporate guarantee given by the company. Technics Oil & Gas was the guarantor, and had guaranteed that its subsidiary would punctually pay the rent and other sums under the lease agreement. It had also undertaken to make the payments should its subsidiary default.

It has been advised that it has a good defence, and has engaged legal counsel to "vigorously defend the action".

At 4.21 pm, it was down 2.9 per cent at S$0.134.