MAINBOARD-LISTED utilities player Renaissance United and its indirect subsidiary Capri Investments are being sued by a company in the US for a total of US$2.8 million.

The US company, Sawyer Falls Co, claims it is owed US$404,214 by Capri under a promissory note dated July 22, 2002 and interest accruing at 8 per cent per month totalling, as at Nov 30, 2020, a sum of US$2.4 million.

Sawyer Falls also claims it is entitled to an unquantified amount, to be proven at trial, arising from an obligation allegedly agreed to be performed by Capri to develop Renaissance United's land project in the US (known as the Falling Water Development project) for the benefit of Sawyer Falls.

Renaissance United said on Tuesday that it believes that the claims made in the legal suit are "without merit" and are "fatally flawed on various substantive and procedural grounds".

Capri first entered into the promissory note as it purchased the Falling Water Development from Sawyer Falls in 2002. At that time, Capri was a subsidiary of Asia Plan Limited, which in turn was a subsidiary of Brentwood Overseas Limited.

When Renaissance United acquired Asia Plan and Capri with it, Capri had already signed and issued the promissory note to Sawyer Falls. "The onerous terms of the promissory note appeared not have been disclosed to shareholders at the time of the acquisition of Asia Plan," Renaissance United said.

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Renaissance United also said that it is taking legal advice in relation to the sale and purchase agreements it entered into with Brentwood for the ultimate acquisition of Capri.

Shares of Renaissance United closed unchanged at S$0.002 on Tuesday before the announcement.