UOB Issued Letter of Demand To Libra Group
In this article (5)
UOB has asked Libra Group, which is mired in financial troubles, to pay up $18.8 million.
UOB has issued a letter of demand to Libra Group for the above amount, based on outstanding banking facilities, the Catalist-listed company announced in a filing on Friday. The letter, dated Oct 8, reveals that events of default have occurred, and «UOB shall cease to be under any further commitment to the Company.»
The entire sum of $18.8 million is immediately payable to the bank by last Friday, the filing said.
The Singapore lender also issued a letter demand to Kin Xin Engineering, a unit of Libra that provided guarantees for the US$18.8 million sum, 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 72,940 Ringgit (S$23,940), related to goods sold and delivered.
Questions & Answers
Q.What is the total amount UOB is demanding from Libra Group?
What is the total amount UOB is demanding from Libra Group?
UOB has issued a letter of demand to Libra Group for $18.8 million, based on outstanding banking facilities owed to the bank.
Q.What is the significance of UOB's letter of demand to Libra Group?
What is the significance of UOB's letter of demand to Libra Group?
The letter indicates that events of default have occurred, meaning UOB will no longer have further financial commitments to Libra Group.
Q.Which other companies are involved in UOB's demand for payment?
Which other companies are involved in UOB's demand for payment?
UOB also issued a letter of demand to Kin Xin Engineering, a Libra unit that guaranteed the $18.8 million sum.
Q.Has Libra Group received any other recent demands for payment?
Has Libra Group received any other recent demands for payment?
Yes, Libra Engineering & Manufacturing, another unit, received a demand from WMS Industrial Gas & Equipment for 72,940 Ringgit for goods sold and delivered.
Reader pulse
What does Libra's situation signal?
21,874 votes so far