SINGAPORE - Listed Serrano said its wholly-owned subsidiary, Serrano Holdings, has received a letter of demand dated April 25 April from lawyers acting for United Overseas Bank (UOB) claiming the repayment of the principal sum of S$21 million, in respect of banking facilities granted to the provider of interior fit-out solutions for residential, hospitality, retail and commercial sectors.
This followed a breach of the terms and conditions of the facilities in which an event of default.
As a result, UOB has ceased to be under any further commitment to Serrano Holdings and all sums owing under the facilities including any accruing interests have become immediately due and payable.
The letter of demand also stated that UOB will be applying the monies in several deposit accounts of Serrano Holdings pledged with the bank amounting to S$484,960 and US$516,454 towards satisfying Serrano Holdings' liabilities.
Notice is given that unless the amounts due are paid to UOB by April 27, the bank shall take such further steps as it deems necessary to recover the sum.
The company, Serrano Holdings and UOB are in discussions over the facilities.
The listed entity said it is also seeking professional advice on the matter and will keep its shareholders updated on material developments.
Serrano shares today fell 0.7 cent or 20 per cent to 2.8 cents.