Sumitomo suit seeks US$50m
Sumitomo Bank is being sued for more than US$50 million it allegedly owes to the Bank of Communications.
Following a deal struck between the two on August 19 this year, it was agreed that the Hong Kong branch of the Bank of Communications would place a deposit of $50 million with Sumitomo at its New York branch.
According to a High Court writ, it was agreed the money would be placed in Sumitomo's account from August 21 to August 28.
Interest on the sum would be earned at a rate of 5.59375 per cent per annum, the writ says.
Sumitomo agreed to repay the Bank of Communications the original sum plus interest of $54,383 to its account at the Chase Manhattan Bank in New York on August 28, according to the writ.
The writ states that the Bank of Communications deposited the $50 million on August 21 as agreed.
However, Sumitomo has failed to pay the total sum of $50,054,383, the writ says.