Daewoo Securities files claim against China Gaoxian Fibre Fabric in South Korea

CHINA Gaoxian Fibre Fabric Holdings announced that it is facing a claim in South Korea from Daewoo Securities Co in relation to an alleged breach of an underwriting agreement from 2010.

The claim is for 1 billion Korean Won (nearly S$1.15 million) in damages.

Daewoo was the lead arranger for the company's public offering of depository receipts (DRs) which were listed on the Korea Exchange in 2011, and China Gaoxian Fibre Fabric had entered into the underwriting agreement with Daewoo.

In a release to the Singapore Exchange on Tuesday, China Gaoxian said that Daewoo has filed the claim for the alleged breach by the company of certain warranties under the underwriting agreement concerning the provision of inaccurate financial statements to Daewoo and false description of cash and assets in the statements submitted for the DRs.

"The company intends to defend the plaintiff's claims and will be seeking legal advice," it added.