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03-10-2012, 07:37 AM
Sounds like more trouble brewing for Boustead! (Vested)
The Straits Times
www.straitstimes.com
Published on Oct 03, 2012
Boustead faces new Arab Banking suit
BOUSTEAD Singapore said yesterday that it will defend itself vigorously against a new lawsuit brought against it by the Arab Banking Corp, in a year-long legal tussle that involves bank guarantees provided by Boustead in Libya before last year's civil war.
The Arab Banking Corp wants the Singapore High Court to award it US$18.78 million (S$23 million) under some counter-guarantees and a facility agreement, plus interest on the amount and costs.
The High Court granted an interim injunction against the Arab Banking Corp on Aug 30, restraining the bank from paying out money under the counter-guarantees and placing restrictions on renewing or extending their period of validity.
The legal tussles between Boustead and the Arab Banking Corp started in June last year, and have featured suits and counter-suits by both parties.
Essentially, Boustead wants its guarantees in Libya to be cancelled, after it evacuated its staff and ceased operations there, following an outbreak of civil war last year that toppled the Muammar Gaddafi regime.
The Arab Banking Corp does not want Boustead to be released from the guarantees, arguing that it should pay up.
The guarantees had been provided by Boustead and issued through the Arab Banking Corp to Libya's Bank of Commerce and Development.
The counter-guarantees were for a bond issued by the Bank of Commerce and Development to a body which awarded a contract to a joint venture involving Boustead.
The joint venture had won the $300 million contract to build a new township in the municipality of Al Marj in Libya.
Boustead said in February last year that the joint venture was being restructured where its interest in the contract would be reduced, with its partner taking the lead in completing the project.
Boustead shares rose half a cent to 97 cents. The announcement was made after the market closed.
JONATHAN KWOK
The Straits Times
www.straitstimes.com
Published on Oct 03, 2012
Boustead faces new Arab Banking suit
BOUSTEAD Singapore said yesterday that it will defend itself vigorously against a new lawsuit brought against it by the Arab Banking Corp, in a year-long legal tussle that involves bank guarantees provided by Boustead in Libya before last year's civil war.
The Arab Banking Corp wants the Singapore High Court to award it US$18.78 million (S$23 million) under some counter-guarantees and a facility agreement, plus interest on the amount and costs.
The High Court granted an interim injunction against the Arab Banking Corp on Aug 30, restraining the bank from paying out money under the counter-guarantees and placing restrictions on renewing or extending their period of validity.
The legal tussles between Boustead and the Arab Banking Corp started in June last year, and have featured suits and counter-suits by both parties.
Essentially, Boustead wants its guarantees in Libya to be cancelled, after it evacuated its staff and ceased operations there, following an outbreak of civil war last year that toppled the Muammar Gaddafi regime.
The Arab Banking Corp does not want Boustead to be released from the guarantees, arguing that it should pay up.
The guarantees had been provided by Boustead and issued through the Arab Banking Corp to Libya's Bank of Commerce and Development.
The counter-guarantees were for a bond issued by the Bank of Commerce and Development to a body which awarded a contract to a joint venture involving Boustead.
The joint venture had won the $300 million contract to build a new township in the municipality of Al Marj in Libya.
Boustead said in February last year that the joint venture was being restructured where its interest in the contract would be reduced, with its partner taking the lead in completing the project.
Boustead shares rose half a cent to 97 cents. The announcement was made after the market closed.
JONATHAN KWOK
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