Olam International Ltd. (O32.SG) Wednesday shot back with a 45-page rebuttal of a research report by Muddy Waters LLC and said it faces no risk of insolvency.

Olam has 'sufficient liquidity' to fund its current business as well as future investment plans, the company said in a statement to Singapore Exchange, rejecting claims by short seller Carson Block and his firm Muddy Waters that the commodities supplier is running a risk of failure.

Olam reiterated that its accounting practices 'strictly' adhere to Singapore's rules and defended its business model and acquisition strategy.

'We would like to reiterate our position that the conclusions drawn in the (Muddy Waters') report are without merit,' Olam said in the statement.

In a 133-page report released Tuesday, Muddy Waters said Olam may need to raise or refinance as much as 4.6 billion Singapore dollars (US$3.8 billion) in debt over the next year in order to stay solvent. The report also said that Olam has been 'aggressive' in its accounting.