Muhammad Al Itrabi at AlQabas reports that National Investments Company Kuwait has won an appeal in Bahrhain against TID relating to some KD30 million in debt.
The article notes that this judgment given before the Central Bank has made its final decision about allowing TID to enter the safe harbour of the Financial Stability Law potentially complicates implementation of TID's restructuring. And opens the doors to other lenders taking action.
That may be a bit of a over reaction.
First, like American baseball, one gets three "goes" in the Bahrain (and other local court systems). In Bahrain in particular, it's not over until the fat lady (the Court of Cassation) sings. By the time the Court of Cassation renders its verdict it's highly likely that the CBK will have decided whether or not TID should enter the FSL.
If the CBK rules against TID, then the implications are clear. A massive legal scramble. It's not likely that the CBK is going to unleash this sort of "trouble" on the already troubled Kuwaiti financial sector.
If it rules in favor of TID, then it's going to be mighty difficult for any Kuwaiti Company to launch legal actions in a foreign jurisdiction. It's also highly likely that the Courts of Bahrain will recognize the FSL protection.
Hard to see this being anything but a minor annoyance. And it might just prompt the CBK to speed up its decision.
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