Hoe Leong Corp has called Otto Marine’s petition for the company to be wound up an “abuse of process” and says it previously agreed a debt repayment programme with Otto, which is still on schedule but not yet complete.
Otto claims the distributor of spare parts owes it $0.92m, but Hoe Leong today said it has a “bona fide” defence for the claim.
Hoe Leong said the $1.25m it has accrued in debt to Otto since December 2014 was settled on July 7 this year and confirmed in writing the next day.
The two parties allegedly agreed in July that Hoe Leong would pay off the $1.25m in 13 installments paid by cheque, of which two payments have already been made and the next is not due until September 1, Hoe Leong said, quoting an email it sent to Otto on July 8.
Otto’s winding up application will be heard in the High Court of the Republic of Singapore on September 13.