Sumitomo suit seeks US$50m

PUBLISHED : Friday, 18 September, 1998, 12:00am
UPDATED : Friday, 18 September, 1998, 12:00am


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.