Mystery solved - the path case sensitive
Have you tried using the command ls?
Is the path of the directory you are connecting to/Prod/Etc/Out ?
Heard from the vendor that this was an IBM Sterling Integrator SFTP machine.
The path that I was given .... ..../out.... but the actual location was .../OUT/...
Used other SFTP servers, but only this one had the case sensitivity issue.
This kind of frustration and waste of time.... is way too stupid.