Swee Joo files suit against investment bank

Swee Joo and its subsidiary Asia Bulkers have on Friday, together with eight other plaintiffs, served a writ of summons and injunctions to a bank with regards to a term loan of RM120m ($39.9m). The other plaintiffs are shareholders and directors of Swee Joo. “The suit is claiming for declaratory orders and injunctive relief against the defendant (Kenanga Investment Bank) in respect of a term loan in the sum of RM120m granted by the defendant to Swee Joo of which Asia Bulkers has provided security for the loan,” the Malaysian shipowner said in a statement.


Sarawak-based Swee Joo is also concurrently filing an application to the high court for injunctive relief against the investment bank. Swee Joo said, on advice of its legal counsel, that it “intends to vigorously pursue the legal action to ensure that the interest of the company is at all times protected". Swee Joo suffered a first quarter net loss of RM7.6m and revenue fell to RM58.9m as against RM93.8m in the previous year's quarter. As at 30 August 2010, the company had debts totalling some RM8.5m, after its subsidiaries Johan Shipping and Asia Bulkers defaulted on loans, credit facilities and interest. Swee Joo, through its several subsidiaries, operates container vessels, general cargo ships, support vessels and dual-purpose vessels, plying routes in Southeast Asia.
(Source:http://www.seatrade-asia.com)