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Discuss this article (1 Comments)Shuaa hits back against DBG in bond row
by This email address is being protected from spam bots, you need Javascript enabled to view it on Wednesday, 24 June 2009
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Shuaa Capital has rejected claims by Dubai Banking Group over a disputed $409m bond after the bank began legal proceedings.
DBG announced on Tuesday it had initiated legal proceedings against Shuaa over the investment bank’s decision to convert a AED1.5bn dirham bond it had issued to DBG in 2007 into shares.
Shuaa denied any amounts were due to DBG, saying it had already exercised its contractual option to redeem the bonds by issuing 250 million new shares, WAM reported.
Majid Al Ghurair, Shuaa chairman, told the news agency: "This is not an unexpected development as DBG had earlier indicated its willingness to file such a claim. This is their right as in the case of any commercial dispute.
“We believe in the rule of law. However, it is worth noting that the parties have exercised considerable efforts since October 2008 to reach a reasonable and amicable solution and the matter is currently under active review by the concerned authorities."
Shuaa said it had given notice to DBG, prior to the maturity date of the notes in October 2008, of its intention to convert the notes and issue shares at maturity.
DBG has refused to accept the new shares and market authorities have so far declined to register them, pending further consideration.
READERS' COMMENTS
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Bad advice being given to both sides
Posted by Geriant, Dubai, UAE on Wednesday 24 June 2009 at 08:29 UAE time
Whichever spinmeisters are advising the two parties, both sides are being given very bad advice indeed. This dispute is simply too complex to slug it out in the media, and yet both sides are no doubt paying millions to be told what to say and do by people who have no actual experience in this kind of matter. Spin won't win it for either side, and the damage to both reputations could be lasting. They are both being made to look amateur and childish, which is the fault of the messagers in the blue suits.
Posted by Geriant, Dubai, UAE on Wednesday 24 June 2009 at 08:29 UAE time
Whichever spinmeisters are advising the two parties, both sides are being given very bad advice indeed. This dispute is simply too complex to slug it out in the media, and yet both sides are no doubt paying millions to be told what to say and do by people who have no actual experience in this kind of matter. Spin won't win it for either side, and the damage to both reputations could be lasting. They are both being made to look amateur and childish, which is the fault of the messagers in the blue suits.
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