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Mon 19 Jul 2010 09:44 PM

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Kuwait's Global wins $250m Dubai court ruling

National Bank of Umm Al Quwain held money as a deposit during talks over acquiring it.

Kuwait's Global wins $250m Dubai court ruling
MONEY REPAYMENT: A Dubai court has ordered the National Bank of Umm Al Quwain to repay Kuwaits Global Investment House $250m. (Getty Images)

A Dubai court has ordered the National Bank of Umm Al Quwain to repay Kuwait's Global Investment House $250 million, Global said on Monday.

Global's chief executive, Bader al Sumait, said in a statement the money from the UAE bank will be used to repay the company's restructured debt.

In December, Global reached a deal with creditors to reschedule $1.7 billion in debt, and entered into new three year facilities with each of its 53 lending banks.

Global said in the statement the $250 million was "towards the refund of a deposit placed by the company with this bank in August 2008". It did not elaborate.

A company official told Reuters the National Bank of Umm Al Quwain held the money which was made as a deposit when Global was in talks with the lender for acquiring a share of it.

The deal fell through in the wake of the global financial crisis, said the official who declined to be identified by name.

There was no immediate comment from the bank. (Reuters)

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