Union Ventures FZC, a UAE-based entity, has accused Unitex LP Gas Limited and Islami Bank Bangladesh PLC (IBBL) of breaching terms under a letter of credit (LC) for delayed payment of USD 1.78 million.
The LC, issued on July 3, 2024, enabled Unitex to import an LPG mixture, with Union Ventures submitting compliant on August 8, 2024. The Islami Bank received the documents three days later but has not released the payment, despite multiple follow-ups from the beneficiary.
Union Ventures asserts that the delay violates UCP 600 LC regulations and has caused financial strain due to accruing interest on the unpaid amount. Unitex LP Gas released the goods on September 5 under a shipping guarantee issued by Islami Bank.
A senior official from Islami Bank attributed the delay to Unitex's inability to arrange funds and indicated the issue might be resolved by December.
Union Ventures has sought intervention from Bangladesh Bank to expedite payment. Meanwhile, Islami Bank has reiterated that disbursement will proceed only after Unitex fulfills its financial commitments.
A legal notice was served in this regard to Islami Bank PLC.
