BNP tio e-brake on US$303 mil loan...muahahahaha..

[Apollo]

Thomson Financial News

Singapore High Court stops BNP's wind-up petition vs SembCorp Marine unit

06.10.08, 9:24 PM ET

 

SINGAPORE (Thomson Financial) - The Singapore High Court has restrained BNP Paribas from filing a winding up petition against Jurong Shipyard Pte. Ltd. (JSPL), a unit of SembCorp Marine Ltd., over an unsettled debt that stemmed from unauthorized foreign exchange transactions.

 

SembCorp Marine and JSPL are still contesting the validity of the foreign exchange transactions worth $303 million entered into by its former finance director Wee Sing Guan on behalf of JSPL.

 

'The High Court agreed with JSPL that the question whether BNP Paribas (other-otc: BNPQY.PK - news - people ) knew or ought to have known of Wee's lack of authority to carry out the unauthorised transactions raised factual disputes and was serious enough to merit a full trial,' SembCorp Marine said in a statement.

 

BNP Paribas had demanded payment of $50.72 million from JSPL on November 21, 2007 within 21 days, and threatened to seek dissolution of the company if payment was not made.

 

JSPL had applied for a court injunction six days later.

 

SembCorp Marine had recognized $208 million in losses from the unauthorized transactions in the fourth quarter of 2007.

 

($1 = S$1.37)

 

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