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.   

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.