Industronics says alleged breach in US$4.6mil loan dispute still unclear
KUALA LUMPUR: Industronics Bhd said it has yet to be told precisely how it allegedly breached a US$4.6 million (RM18.79 million) loan agreement at the centre of a lawsuit filed against the company.
Industronics Bhd has been served with a lawsuit alleging a breach of a US$4.6 million loan agreement, but the company remains uncertain about the specific nature of the alleged default or violation. The lawsuit was filed by Bluemount Investment Fund SPC, which seeks up to US$5.15 million in damages, including the principal amount and accrued interest as of April 2.
Bluemount has not provided a statement of claim in the writ of summons served on Industronics. The company denies any admission of default or breach and states that no liability has been determined by the court. The loan was originally intended to support a pre-initial public offering (IPO) investment in AMES Hotel, and any use of the funds for other purposes would require prior written consent from the lender.
The loan carries an annual interest rate of 12 percent and has a 36-month term, with interest repayments due one year from the drawdown date. Bluemount can convert the loan into Industronics shares or request repayment by the maturity date, subject to the agreement's terms. The company is currently reviewing its repayment position and Bluemount's allegations with its legal advisers.
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