SINGAPORE - Singapore-listed furniture maker Lorenzo International has given three more months to a former business partner who it says owes the firm $2.8 million.
According to Lorenzo, Mr Michael Chan and his firm Straitsworld Advisory, were due to pay back this amount to Lorenzo bySept 7, after a deal they had entered into fell through.
In late September, Lorenzo extended the deadline to Dec 7, andthen said in an announcement on Thursday night (Dec 10) 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.
However, Lorenzo then decided not to proceed with the purchase of the medical facilities and wanted the depost 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 S$2.8 million 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.