Dubai: Global Investment House Monday said in a statement that it won a favourable verdict from the Dubai Court of Appeal in a dispute relating to a recovery of $250 million (Dh918 million) deposit plus interest from the National Bank of Umm Al Quwain (NBQ).
The dispute was over the $250 million deposit Global placed with NBQ as part of a deal to acquire a convertible debt instrument in NBQ.
Conversion option
The National Bank of Umm Al Quwain and Global Investment House announced in 2008 a primary agreement to issue a convertible debt instrument. The convertible bond was to be issued by NBQ to Global. Under the initial agreement Global had the option to convert the instrument into new shares of NBQ subject to approvals by the UAE regulatory authorities.
As the initial agreement did not materialise, a dispute arose over the initial deposits placed by Global with NBQ.
The Dubai Court of Appeal Monday ordered NBQ to repay to Global Investment House $250 million towards the refund of a deposit placed by Global with the Dubai branch of the bank in August 2008 plus interest at the rate of 9 per cent with effect from December 3, 2008 till the date of repayment plus expenses.
According to a statement from Global, to date the due and unpaid interest amounts to approximately $54.6 million.
"We are grateful for the justice granted by the Honourable court and are pleased to state that recovery of this long overdue deposit along with interest will strengthen the company's financial position," said Maha Al Ghunaim, Chairperson and Managing Director of Global.
Global earlier requested a temporary suspension of its shares on the Kuwait Stock Exchange, Dubai Financial Market and Bahrain Stock Exchange to eliminate any risk of potential misuse of information between the passing of the court judgment and its public disclosure.
Temporary suspension
Following the court verdict Global said yesterday that it expects its shares to resume normal trading on all markets where Global requested the temporary suspension.
Sources at the Dubai and Bahrain stock exchanges said they were aware of the court ruling but said they had not received any official communication during the working hours.
No comments were available from National Bank of Umm Al Quwain. In a filing to the Abu Dhabi Stock Exchange in August last year NBQ said that it had deposited the $250 million which was the subject of the lawsuit between it and Global with the Dubai Court.
It went on to note that previously the amount had been deposited with the UAE Central Bank.
