UDL sued over debt of $17.5m

PUBLISHED : Thursday, 30 July, 1998, 12:00am
UPDATED : Thursday, 30 July, 1998, 12:00am
 

Marine works manufacturer UDL Holdings is being sued by a leasing company over an alleged $17.5 million debt.


Under an agreement with Showa Leasing (Hong Kong), UDL was deemed liable for all money and liabilities owed to the company by Universal Dockyards, according to a High Court writ.


UDL is a holding company of Universal Dockyards.


Four loan agreements were entered into by Showa and Universal between September 1994 and December 1996, the writ says.


As of June 30, Universal owed Showa $17.5 million. However, despite demands, the sum has yet to be repaid, according to the writ.


Interest and costs are also being sought.


UDL was barred from tendering for further Works Bureau contracts in March this year, allegedly because of poor performance on Government work.


It was also reported to be facing cash-flow problems after a building slowdown.


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