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Metic Group files lawsuit against Northern and Western Insurance

Published on 2 Jun 2009 under category: legal

A specialist in architectural glass is launching a commercial litigation lawsuit against Northern and Western Insurance, which has failed to complete its part of an agreed credit deal, a source reveals.

Metic Group could have to close UK wing Melayway Glass due to the alleged non-delivery of funds, Proactive Investors reports.

The claimant says the breach of contract has had a material impact on the company and is filing for damages in excess of £10 million as a result.

According to the news provider: "Metic has appointed accountancy Tenon to conduct a full review of the group's activities which may or may not result in the closure of the Melayway subsidiary."

The original contract was laid out in a guaranteed stand-by letter of credit and the company claims the breach has resulted in it receiving a number of penalties for its inability to meet obligations to other firms.

Melayway was founded in 1993 and is based in Surrey and the West Midlands, dealing with projects costing between £50,000 and £5 million.