Vinashin, the Vietnamese state-owned shipbuilder sued by Elliott Vin (Netherlands) NV for a portion of a $600 million loan, said the claim isn't valid.
Only the loan's arranger and facility agent Credit Suisse AG Singapore Branch can enforce payment obligations on the instruction of the majority of the lenders, Vinashin, as Vietnam Shipbuilding Industry Group is known, said in its Jan. 9 response to Elliott's lawsuit in London's High Court.
Elliott, which bought part of the loan from Bank of America N.A., also failed to properly notify Credit Suisse of information as required by the loan agreement and has to prove it's a lender of record, Vinashin said. The shipyard received the loan in 2007 and missed the first $60 million payment on the principal in December 2010, putting the loan into default, according to Moody's.
Vinashin has since missed paying an additional two installments of $60 million each, two people with direct knowledge of the deal said on Jan. 18. Elliott is one of about 20 creditors with a stake in the $600 million loan with Credit Suisse (CSGN), Depfa Bank Plc and Malayan Banking Bhd. also among holders of the debt, the people said, declining to be identified as details are private.
The case is Elliott Vin (Netherlands) NV v. Vinashin Shipbuilding Industry Group and others, 2011-1296 in the High Court of Justice, Queen's Bench Division, Royal Courts of Justice.