NBQ wins delay in $250m Global case
Dubai, June 20, 2012
National Bank of Umm Al Qaiwain (NBQ), a bank in the UAE, said on Wednesday it had won a delay in a $250 million judgement against it in a case involving Kuwaiti group Global Investment House.
The sum was placed with NBQ in August 2008 as the first part of Global's purchase of a 20 percent stake in the bank through a 2.36 billion dirham ($643 million) convertible bond issue.
As markets slumped in late 2008 and Global faced debt problems which forced it into a restructuring, it cancelled the planned purchase and asked for the money back. But NBQ said it was entitled to keep it.
In May this year, a Dubai appeals court ordered NBQ to pay Global the money plus $79 million interest. A court of cassation in Dubai has now suspended enforcement of that judgement until September 4 when another appeal by NBQ will be heard, the bank said on Wednesday.
Global is negotiating its second debt restructuring in three years. Having completed a $1.7 billion rescheduling in 2009, it said last September it would ask creditors to halt repayments while it sought a new deal. - Reuters
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