Saxo Bank claims against Innopac resume; unrelated Innopac MOU terminated

Investment holding company Innopac Holdings on Monday night said that Saxo Bank has resumed its claims of nearly S$14.7 million against the company, over the negative account balances of two subsidiaries.

Although Innopac had filed counterclaims against Saxo Bank, stating that the negative balances were incurred without any guarantee by the company, the counterclaims did not proceed as the settlement was dependent on the proceeds of proposed placements announced on Oct 9, 2018 and Feb 19, 2019.

The proposed placements were cancelled because they were conditional upon Innopac obtaining more time to satisfy listing requirements. Its application for the extension was rejected by the Singapore Exchange Securities Trading (SGX-ST) in May this year.

Innopac has appointed its solicitors to contest the claims and proceed with a counterclaim against Saxo Bank. It added: "The company continues to believe that Saxo Bank's claims are without merit and shall expend all efforts to defend its rights while seeking damages in our own counterclaim."

Innopac will make further announcements as and when there are any material developments related to the claims.

In a separate bourse filing on Monday night, Innopac said that a memorandum of understanding (MOU) with Masmeyer Holdings for a proposed joint venture has been terminated, as the MOU conditions have not been fulfilled.

The joint venture was to explore the development of a land parcel in Malaysia into an industrial and recycling hub. It was conditional upon the parties entering into definitive agreements to execute the development, and proposed placements announced on Oct 9, 2019 being approved by the SGX-ST and Innopac shareholders and successfully completed, neither of which has happened.

Innopac shares have been suspended since June 7, 2018.