SHAH ALAM: A company involved in the local trading of rice and commodities has sued Oversea-Chinese Banking Corporation (OCBC) over alleged dishonesty and negligence in managing its credit facilities.
The company, Prolink Marketing Sdn Bhd, is claiming more than RM280 million in damages from the Singaporean bank, which covers losses of contracts, accumulated profit losses and outstanding bank loans.
It claimed that OCBC had breached the terms and conditions to receivable purchase facilities and even changed the stipulations without the agreement of the company.
The bank declined to comment when contacted.
The company also claimed that it was instructed to settle its facilities with OCBC within a short period of time.
It said the bank’s delay in issuing a redemption and releasing its collateral meant the company could not apply for credit facilities from other banks in the meantime.
“The oppressive act of the bank caused the plaintiff to exhaust all their internal funds, unable to fulfil their contracts and unable to service their loans with other banks.
“In a short span of time, the plaintiff was forced to pay a total sum of RM35,898,325.21 to the defendant bank.
“The plaintiff was saddled with financial difficulties, resulting in breaching their loan repayments with various other banks,” said the summons.
The suit was first filed in January 2019 and the matter was heard in the Shah Alam High Court on Jan 23 this year, before being adjourned to Feb 18.