Property developer Chung Hwa Development Holdings hit with litigation
Property developer Chung Hwa Development Holdings has been hit with litigation seeking more than $20 million from it as guarantor for an alleged unpaid loan.
Sumitomo Bank filed a writ at the High Court seeking the sum of $20 million, along with interest amounting to $667,397.
The loan was extended to Favourite in December 1996, with Chung Hwa as guarantor jointly with the New China HK Group and Mega Pacific Holdings, the writ said.
Favourite was obliged to pay interest of $345,205 on September 30 this year, but allegedly defaulted.
Solicitors for Sumitomo wrote to the company on November 5 to demand payment of the principal sum, along with interest, according to the writ.
Sumitomo claimed the parties named in the writ were in breach of contractual obligations as they had failed to make any payment, causing loss and damage to the bank.
Sumitomo also claimed default interest of $322,191, along with costs of the action.