Boustead Singapore starts fresh action against Arab Banking Corporation

The company has been advised that the claim for payment it has received is without merit.

The Board of Directors of Boustead Singapore Limited issued an update relating to the proceedings in the High Court of the Republic of Singapore taken by the company against Arab Banking Corporation.

The announcement said Boustead Singapore has commenced a fresh action against the defendant on 3 September 2012 in Suit No. 730/2012/W for, inter alia, a declaration that the company be discharged from all liabilities and or obligations towards the defendants in relation to certain bank guarantees issued through the defendant in favour of Bank of Commerce and Development.

The Board also revealed that the company has received a claim for payment of the sums under the Counter-Guarantees by a letter from the defendant dated 3 September 2012. The company has been advised that the claim is without merit and arises from the same demands made by the Bank of Commerce and Development more than one year ago. The company has responded to such claim accordingly.

The interim injunction granted by the High Court against the defendant on 30 August 2012 to restrain the defendant from making payment of monies under the Counter-Guarantees and from renewing or extending the period of validity of the Counter-Guarantees until after the hearing of the fresh action or until further order remains in place.