Wednesday, 18 November 2009

Abu Dhabi court orders freeze on Saad assets

Source: Arabian
Abu Dhabi Summary Court has issued an order for the provisional attachment of the bank deposits of Saad Trading, Contracting and Financial Services Company and Saad Holding Company as well as the partners in these two Saudi firms, according to a report.
Giving its decision on a writ filed by a large national bank in the UAE, the court also ordered the provisional seizure of any movable properties in any emirate as well as the major amount of shares they own in a number of companies listed in the stock markets in the UAE, the newswire WAM reported on Thursday.
The attachment order on deposits with the banks operating in the UAE has been enforced with immediate effect through the UAE central bank, which in turn will send circulars to the banks for the attachment of deposits within the limit of $151m, WAM added.
The defendants had signed loan agreements with the bank for credit facilities, the total value of which had reached $151m, it said.
The two firms then had defaulted on repayment of the loans and were being sued by creditors at the local, regional and global levels leading to the deterioration of credit ratings of the subsidiaries of these two companies by international rating agencies, WAM said.
Moreover, a number of creditors had resorted to the seizure and freezing of funds and assets of one of their affiliates, the newswire added.

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