StanChart sues Varun Shipping chief over loan default

Standard Chartered sued Varun Shipping Chairman Yudhishthir D Khatau for $5.2 million over a loan default in Singapore. The loan of as much as $20 million to VSC International Pte was guaranteed by Khatau and secured by a shipping vessel, according to a lawsuit filed in the Singapore High Court last month. VSC defaulted on the loan in March, the bank said. VSC was set up as a fully owned subsidiary of Varun Shipping, according to its annual report for the year ended March 2012.

"This matter is under discussion between us and Standard Chartered," Khatau said by telephone on Thursday. He hasn't filed his defence and declined to comment further. Citing an interview with Khatau Business Standard had reported on August 12 that Mumbai-based Varun Shipping, a carrier of liquefied petroleum gas, is planning to restructure some of its loans.

The shares fell 2.4 percent to 7.85 rupees, headed for their lowest price since May 15, as of 2:28 p.m. in Mumbai trading.

Standard Chartered spokeswoman Lim Siow Joo didn't reply to an e-mail seeking comment. The case is Standard Chartered Bank v Yudhishthir D. Khatau, S722/2014. Singapore High Court.