A hold­ing com­pa­ny has lost its bid to have a law­suit over a $3.4 mil­lion loan it al­leged­ly guar­an­teed for its St Lu­cia-based sub­sidiary dis­missed at a pre­lim­i­nary stage.

In a de­ci­sion de­liv­ered yes­ter­day, High Court Judge Frank Seep­er­sad dis­missed the ap­pli­ca­tion brought by Siu Chong In­vest­ments Ltd af­ter it was sued by RBC Roy­al Bank (T&T) Ltd.

The law­suit re­lates to an EC$1,378,608.79 pay­ment the bank made to an­oth­er bank last year as part of a sep­a­rate guar­an­tee to its par­ent com­pa­ny Roy­al Bank of Cana­da (RBC), in re­spect to mon­ey bor­rowed by the com­pa­ny’s sub­sidiary, Ex­cel­lent Stores (St Lu­cia) Ltd from RBC.