Six firms sue Nomura over syndicated loan

Pointing The Finger

Six Taiwanese banks filed a lawsuit against a unit of Nomura Holdings Monday, saying it failed to extend its portion of a syndicated loan to a now-insolvent shoemaker, Ultrasonic.

Bloomberg News reports that Nomura International (Hong Kong) Ltd, part of Japan’s biggest brokerage, was sued in the Taipei District Court, according to Winnie Chang, a Taipei-based spokeswoman for Cathay United Bank.

In a joint statement, the six banks claim Nomura didn’t provide a pledged $9m based on an agreement for a $60m syndicated loan for Chinese shoemaker Ultrasonic signed on August 8, 2014. Chang confirmed that the loan was drawn down that month and the borrower failed to repay the principal and interest.

The six firms are Cathay United, Chang Hwa Commercial Bank, a lender now known as KGI Bank, Hwatai Bank, Taiwan Business Bank and Taiwan Cooperative Bank. The China Times newspaper reported yesterday that the lenders are seeking compensation of around $51m, citing unidentified bank officials.

To access the complete Bloomberg News article hit the link below:

Nomura Sued by Six Taiwanese Banks Over Soured Syndicated Loan

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