Innopac receives letter of demand on negative balances of accounts maintained by 2 subsidiaries
INNOPAC Holdings on Wednesday said it received a letter of demand from Saxo Bank, which is seeking a payment of S$14.69 million on negative balances under accounts maintained by two of Innopac's subsidiaries - Heritage Investment Corporation and Wang Da Investment. The letter of demand, dated June 1, was sent on behalf of the Danish bank by Rajah & Tann Singapore LLP.
In a filing with the Singapore Exchange, Innopac said that the Danish bank alleges the company is liable for the claim on the purported basis of a Memorandum of Understanding dated Dec 24, 2013 despite the said negative account balances being incurred by the subsidiaries without any guarantee by Innopac.
The company added that at present, no legal proceedings have been commenced by Saxo against Innopac, and "the group will be evaluating the basis and merits of the claim and will take appropriate action accordingly".
Pending the resolution of the claim, the board is of the view that the company is unable to reasonably assess and inform the market of its financial position and will be requesting for trading of its shares to be suspended.
Innopac shares last traded at S$0.002 on June 1. The company requested for a trading halt on June 4.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
UBS weighs synthetic risk transfer amid capital boost proposals
Oil settles higher on supply concerns in the Mid-East, economic woes subdue gains
S-Reits falter as investors weigh possibility of zero rate cuts in 2024
CapitaLand Investment posts total revenue of S$650 million for Q1
Europe: Stoxx 600 logs best day in three months as banks shine
US: Stocks rally after strong tech results