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Chaswood Resources receives statutory demand of payment for S$3m

CHASWOOD Resources Holdings announced after trading hours on Thursday that it has received a statutory demand of payment from solicitors representing the interim judicial managers of TAP Venture Fund I (TVF) on Jan 16, seeking payment of S$3 million within 21 days.

Upon the expiry of the 21 days, TVF is entitled to file a petition to wind up the company in court.

The payment is in relation to the corporate guarantee provided by the company for the subscription by TVF of the redeemable exchangeable bonds issued by Chaswood Capital, a wholly-owned subsidiary of the company, over three tranches on 25 Apr 2014, 5 Dec 2014 and 27 Jan 2015. The maturity date of the bonds was due on Apr 23 last year and no redemption had been made.

Chaswood Resources Holdings said that it is currently seeking the advice of its solicitors on this matter.

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The group said that negotiations with TVF to seek an amicable solution to the overdue redemption and negotiations remain ongoing. The company had various discussions with TVF on a proposed settlement but no conclusion has been reached.

No payment has been made in respect of this to date. In the event that the payments are to be made, they will have a material adverse impact on the financial position of the group, the company said.