Hoe Leong: UOB's letter of demand won't affect its viability

Singapore

THE board of Hoe Leong Corporation said a letter of demand received by its subsidiary, Arkstar Voyager, from United Overseas Bank (UOB) claiming repayment of about S$5.66 million, will not affect the group's ability to carry on its business as a going concern.

The heavy equipment supplier on Wednesday disclosed the letter of demand received by its wholly-owned unit. The amount represents the loan principal and accrued interest up to May 31, 2019.

In its response to queries from the Singapore Exchange on Friday, Hoe Leong said it had provided a corporate guarantee of up to S$9.1 million for Arkstar Voyager. The latter's ves…