SINGAPORE - Steel stockist HG Metal Manufacturing is suing Gayathri Steels for a debt of about S$1.81 million, the firm announced on Tuesday.
It wants to claim an outstanding amount of about S$1.81 million from Gayathri Steels, for the "non-payment of supplies of steel materials", including interest.
Gayathri Steels has filed a defence and counterclaim to deny that they owe HG Metal Manufacturing that amount.
Gayathri Steels said that HG Metal Manufacturing's claim is premature and it is also not not entitled to claim the outstanding sum.
It is also claiming that the steel stockist has caused a loss of profit of about S$2 million, owing to "an alleged breach of contract on the part of the company".
HG Metal Manufacturing is seeking legal advice and will defend those claims.
The firm said that legal proceedings are not expected to have any material impact on the net tangible assets per share and earnings per share for the financial year ending Dec 31.
It "will release further announcements to update its shareholders on any material developments in relation to the legal proceedings as and when appropriate".
