New problems have flared up on two fronts at timber flooring firm Jason Holdings and its subsidiary Jason Parquet Specialist (Singapore).
It has received a letter of demand from a third bank over missed payments while legal action is looming over several claims by contractors for late payments.
And the landlord of dormitory units in Kaki Bukit Road is ejecting Jason Parquet from the premises, the company said yesterday.
The latest blow came in the form of a letter from lawyers of the local branch of ANZ to Jason Parquet, Jason Holdings and its executive directors Jason Sim Chon Ang and Sim Choon Joo demanding the full repayment of $1.69 million. The sum comprises a $1.64 million principal and $52,000 in interest under the facilities granted by ANZ to Jason Parquet and guaranteed by Jason Holdings and the two directors.
Last month, DBS Bank cancelled certain banking facilities granted to Jason Parquet and demanded repayment of about $7.29 million - a sum guaranteed by Jason Holdings. Earlier this month, Maybank demanded an immediate repayment of $1.7 million that is owing under the banking facilities it granted Jason Parquet.
Jason Holdings said Jason Parquet also faces claims from five contractors threatening legal action if repayments are not made within stipulated deadlines. The deadlines for four repayments have lapsed.
SAC Freight asked for the repayment of $12,000 by April 27, Bostik Findley (Malaysia) demanded about $32,000 by April 29, Blue Star Engineering & Construction about $174,000 by May 13 and Nidhi Engineering & Construction for about $61,000 by May 11.
Jason Holdings said the fifth contractor, Safeplux Electrical Engineering, has obtained an order from the Small Claims Tribunals requiring Jason Parquet to pay about $1,000 by June 6.
Separately, Jason Parquet will need to vacate domitory units in Kaki Bukit Road by May 22 after landlord Labourtel Management Corporation terminated the tenancy agreement "with immediate effect". Reasons were not provided.
Alternatively, Jason Parquet can move out by May 31 if refurbishment work is needed to restore the units to their initial condition, the firm said.
In addition, Soil-Build, the main contractor of a sub-contract entered into with Jason Parquet, has sent demand notices to Etiqa Insurance, the statement said. Etiqa issued a performance bond executed in favour of Soil-Build last November in connection with the sub-contract. Soil-Build has demanded an immediate repayment of about $100,000 from Etiqa that is due under the terms of the performance bond.
On May 3, the company announced that an application to wind up Jason Parquet was under way, with a court hearing scheduled for Friday. Jason Holdings shares last closed at 6.2 cents on Jan 5 before a trading halt was called.
