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Magnus Energy receives letter of demand for S$5.1m

CATALIST-LISTED Magnus Energy Group has received a letter of demand amounting to about S$5.1 million for repayment of loans which former chief executive Luke Ho allegedly borrowed in 2016, purportedly on behalf of the company.

Magnus Energy received the letter of demand on Feb 29 from solicitors acting on behalf of a person named Thong Soon Seng, the troubled oil and gas firm said in a bourse filing late on Tuesday night.

The repayment sought by Mr Thong comprises S$4.6 million in loan principal and contractual interest owed as at Jan 18, 2018, as well as further interest on the same of about S$519,000. 

According to Magnus Energy, no legal proceedings have been commenced against the company at this stage. The board added that it is seeking independent legal advice on the basis and merits of the claim and will make further announcements on the material developments as necessary.

In January this year, Magnus Energy said it had reached a mutual agreement with Mr Ho for him to relinquish his role with effect from Jan 9. 

Among other things, the company was involved in a board tussle where Charles Madhavan and his team edged out independent director Lee Chong Ping at an extraordinary general meeting (EGM) held on Jan 9, 2020. 

Nearly 100 mostly mom-and-pop retail investors turned up for the EGM. Many had told The Business Times then that they were fed up with shenanigans in the company, which have cost them their investments.

Trading in Magnus Energy's shares has been suspended since August last year.