Lorenzo further extends deadline for $2.8m debt

Furniture maker Lorenzo International has given a former business partner three more months to pay back $2.8 million it says is owing to the firm.

According to Lorenzo, Straitsworld Advisory and its main shareholder, Mr Michael Chan, were due to pay back the sum to Lorenzo by Sept 7, after a deal they had entered into fell through.

In late September, Lorenzo extended the deadline to Dec 7, and then said in an announcement on Thursday night that it has given a further extension, until March 7.

So far, Lorenzo said, Mr Chan and Straitsworld have paid Lorenzo $35,287.67 - the interest due on the $2.8 million.

Earlier this year, Mr Chan and Straitsworld had proposed to sell some medical facilities to Lorenzo. Lorenzo paid a refundable deposit of $2.8 million as part of an agreement that Mr Chan and Straitsworld would not solicit other companies with proposals within a certain period that might hamper the deal.

Earlier this year, Mr Chan and Straitsworld had proposed to sell some medical facilities to Lorenzo. Lorenzo paid a refundable deposit of $2.8 million... However, Lorenzo then decided not to proceed with the purchase of the medical facilities and wanted the deposit refunded.

However, Lorenzo then decided not to proceed with the purchase of the medical facilities and wanted the deposit refunded.

In Thursday's announcement, Lorenzo said that Straitsworld had informed it that "the $2.8 million deposit was earlier paid to a vendor to secure a proposed transaction... to purchase the medical facilities".

Straitsworld was seeking recovery of the $2.8 million from the vendor, and so requested an extension, Lorenzo said.

The extension is subject to Straitsworld and Mr Chan using their "best endeavours" to pursue the recovery of the deposit from the vendor, Lorenzo said.

Straitsworld and Mr Chan also have a High Court lawsuit filed against them by listed doormaker KLW, which is seeking the repayment of $7 million.

Mr Chan is, however, counterclaiming $3.45 million that he alleges KLW owed him from agreements between him and the company through former KLW key executive Lee Boon Teck.

A version of this article appeared in the print edition of The Straits Times on December 12, 2015, with the headline 'Lorenzo further extends deadline for $2.8m debt'. Print Edition | Subscribe