The Investment Dar - Aref Investment Group Court Case: Judgment in Aref's Favor Apparently Upheld

Aref Investment Group announced on the Kuwait Stock Exchange that Kuwaiti Court had rejected TID's non payment of KD12,644,771 previously awarded in favor of Aref.  It's unclear if this was a judgment by the appeals court, the press release uses the term "Istishakal" and "Ishkal".  In any case it seems Aref has won another judgment and TID has been fined KD100, ordered to pay KD 50 in lawyers' costs and forfeited its guarantee.  TID had apparently filed a request with the Court to stay the implementation of the earlier judgment.

You'll recall that the Court of First Instance ruled in Aref's favor in November.  Earlier posts here and here.

This confirms my earlier comments that approval of the restructuring plan by 2/3 of TID's creditors does not stay legal actions by creditors deciding to pursue their rights outside the restructuring.  In other words that there is no legal mechanism in Kuwait to "cram down" dissident creditors.  This could complicate the implementation of the restructuring.

I expect that tomorrow TID will issue its own press release so stay tuned.

Here's the Arabic text of Aref's press release.

[12:29:48]  ِ.ايضاح من (عارف) بخصوص رفض الاشكال فى التنفيذ المقام من دار الاستثمار
يعلن سوق الكويت للاوراق المالية بانه ورد الينا الان من شركة مجموعة عارف ‏
الاستثمارية بانه قد سبق ان صدر حكم لصالح مجموعة عارف الاستثمارية ‏
فى القضية رقم (7400/2009) تجاري كلي ويقضي بالزام شركة دار الاستثمار ‏
بان تؤدي لمجموعة عارف الاستثمارية مبلغ وقدره 12,644,771 د.ك مع الزام ‏
شركة دار الاستثمار بالمصروفات واتعاب المحاماة ،واستشكلت شركة دارالاستثمار
فى تنفيذ الحكم المذكور بالاشكال رقم 3379/2009 مستعجل /7 وصدر حكم برفض ‏
الاشكال المذكور وتغريم الشركة المستشكلة 100 د.ك ومصادرة الكفالة وخمسون ‏
د.ك مقابل اتعاب المحاماة .‏