Lippo sues Jet-Air in $4.9m margin claim
Lippo Securities is suing a subsidiary of freight forwarder Jet Air International for nearly $5 million owed on a margin account.
According to a writ filed at the Court of First Instance, Lippo is claiming $4.9 million from Jet-Air (HK).
A margin client agreement was signed on March 6, 1997, empowering Lippo to act as Jet-Air's broker to deal in securities, the writ states.
Under the agreement, Jet-Air would deposit extra cash or security to maintain a credit balance for increased margin requirements. The writ says Jet-Air failed to respond to numerous margin calls made by Lippo after utilising the account to purchase securities on credit.
The writ says Jet-Air 'wrongfully failed and/or refused to settle any of the margin calls' despite a letter of demand sent out by Lippo's solicitors on February 13 this year.
As of July 13, the sum of $4.9 million was the debit balance in Jet-Air's account with Lippo.
Lippo is claiming the full sum plus interest of $31,920 and costs.