New Silkroutes receives US$10.7m letter of demand
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MAINBOARD-LISTED New Silkroutes Group has received a letter of demand for an alleged sum of US$10.7 million from a company, Iolani Shipping, it disclosed in a Tuesday bourse filing.
New Silkroutes is a corporate guarantor for a lease-financing arrangement of a bare boat charter, entered into by its subsidiary TXZ Tankers. It is currently reviewing the letter of demand with its legal advisors.
The company was recently under regulatory scrutiny. In January, Singapore Exchange (SGX) raised queries regarding New Silkroutes' wholly-owned oil-trading subsidiary, International Energy Group, which it had not been successful in disposing. (see amendment note)
Shares of New Silkroutes closed at S$0.141 on Tuesday, down 10.19 per cent.
Amendment note: An earlier version of this story incorrectly stated that the group had not been successful in winding up IEG. This is incorrect. The group was not successful in the disposal of IEG after the sale and purchase agreement lapsed and is currently in the process of winding up IEG.
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