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Libra Group receives letter of demand from UOB for US$18.8m

DISTRESSED Libra Group has received a letter of demand for US$18.8 million from UOB for outstanding banking facilities, the Catalist-listed company announced in a bourse filing on Friday. 

The letter, dated Oct 8, indicates that events of default have occurred and the entire sum of US$18.8 million is immediately due by Friday, Oct 11. 

Kin Xin Engineering, a unit of Libra that provided guarantees for the US$18.8 million sum, also received a letter of demand from UOB for repayment by the same deadline. 

Another Libra unit, Libra Engineering & Manufacturing, separately received a letter of demand dated Sept 30 from WMS Industrial Gas & Equipment for RM72,940 (S$23,940), related to goods sold and delivered. WMS is also seeking RM159 for the cost of issuing the letter of demand.   

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Libra and both the units are seeking legal advice, the company said. 

Libra shares have been suspended from trading. They last closed at 3.5 Singapore cents on Aug 22.