CBK says court rejects Dar claim
Kuwait, October 21, 2011
Commercial Bank of Kuwait (CBK) said that a regulatory court had dismissed a case brought by Investment Dar over a disputed stake in Boubyan Bank.
CBK and Dar are in litigation over the Boubyan stake which Dar sold to CBK in 2008 to obtain funding, with the right to buy it back. In 2009, CBK said Dar had lost that right and tried to sell the stake on the open market, a move blocked by a Dar-requested court order.
CBK said that the Capital Markets Authority (CMA) court rejected Investment Dar's claim that CBK had no permanent rights to the shares in Islamic lender Boubyan.
'On Oct. 19 the (CMA) court rejected Investment Dar's case about the voidness of CBK's ownership of Boubyan's shares,' CBK said in a statement on the Kuwaiti bourse website on Thursday. It did not elaborate.
CBK owns a 19 percent stake in Boubyan, according to Kuwaiti bourse data.
'This is a first degree ruling and not executable ... and it will be appealed immediately,' Dar said in a separate statement on the bourse website on Thursday.
Dar, owner of half of luxury carmaker Aston Martin, is restructuring $3.6 billion in debt.-Reuters
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