A unit of Manhattan Resources served with injunction order

SINGAPORE - A unit of Manhattan Resources has been served with an injunction order, said the Singapore-listed coal shipping firm on Thursday.

Its subsidiary Manhattan Resources (Ningbo) Property (MRN) had on March 28 received the interlocutory ex-parte injunction order dated March 10, issued by the Ningbo City Yinzhou District Court.

In line with this, MRN's deposits with its banks or other assets of 45.3 million yuan will be frozen.

The plaintiff in the injunction order is MCC TianGong Group Corporation.

Manhattan Resources said the disputes raised by MCC show that it intends to claim for the services alleged provided mainly under a building design and construction drawing service agreement dated August 23, 2013, which is denied by MRN.

Aside from the injunction order, MRN has not received any notice of proceedings by the Ningbo City Yinzhou District Court to date.

Manhattan Resources said it has been advised by its China legal advisor that there appears to be no merit to the claims by MCC and that MRN intends to vigorously defend against such claims.

It added that the injunction order is not expected to have significant impact to its cashflow position as MRN has sufficient cash to meet its financial obligations for the financial year ending December 31.

MRN is seeking legal advice on the next steps for the above proceedings.