Dubai developer Union Properties serves 'final notice' to ex-chairman after payment defaults
Under earlier settlement deal, ex-chairman was supposed to make regular payback
Dubai: Union Properties has relaunched action against its former chairman after he and family members defaulted on a settlement deal earlier reached with the Dubai developer.
The ex-chairman, Khalifa Al Hammadi, ‘continued to default on paying the agreed monthly payments despite being notified several times’, Union Properties added in a statement.
A final notice was thereafter served on him, his family members and others for breach of terms and conditions on the settlement agreement.
It was in April 2023 that the developer first announced it had closed a Dh620 million repayment deal with the former official. Prior to that, the company had embarked on legal claims related to issues that came to light during his tenure as its top official.
On DFM, the UP stock is trading 2.4 per cent down at Dh0.27.
Now, time for tough action
In the statement, Union Properties said it will start implementing ‘all the procedures stipulated in the settlement agreement, including the sale of real estate assets of Mr. Khalifa Al Hammadi, his family members, and other’.
The company also ‘reserves the right’ to take further action that it deems appropriate and ‘necessary to preserve the right of Union Properties and its shareholders’.
After the April settlement deal, UP had taken possession of the individual’s car.
Also, on the issue of a building owned by UP, a Dubai Court of Appeal issued a ruling that terminated the sale and purchase agreement entered into during the ex-chairman’s tenure.
The rights to the building now vest with the developer.
With Emirates NBD, it will pay back Dh850 million in instalments within nine months.
On the Dubailand deal, the deal will allow UP to pay Dh400 million over a 3-year period.
"Our resolve, at Union Properties, to surmount obstacles aligns seamlessly with our remarkable progress in the implementation of our turnaround strategy and our steadfast commitment to executing our recovery plan we appreciate the trust and continuous support of our shareholders,” said Amer Khansaheb, Managing Director, Union Properties.
More to follow...