Shuaa Capital on Gulfinvest Kuwait and Ahlia Holding Company

Since I posted on this topic yesterday, it's only fair to note that Shuaa has made an announcement on the DFM today.

PRESS RELEASE

SHUAA says no impact from Gulfinvest default

Dubai, 5 April 2010 – SHUAA Capital expects no major financial impact resulting from the statement by Gulfinvest to the Kuwait Stock Exchange regarding its default on a AED 200 million loan to Abu Dhabi Commercial Bank. SHUAA had entered into a guarantee in respect of this loan in 2007, and confirms that it will fulfill its obligations as they become due. As part of SHUAA's diligent risk management process, the Firm took prudent action and made a provision for the loan guarantee at the end of the year 2009. This information has been made available to the market in the financial statements which are available on SHUAA's website.

Since September last year, SHUAA's new management has taken decisive steps to reduce risk exposures emanating from non-core businesses and expects no further material impact or downside risks arising from legacy issues of the Firm. SHUAA has a clear focus on maintaining and developing its leadership positions in its core fee generating businesses.

- ENDS-

The last paragraph is of course true.  

However, I'd like to give a tip of AA's virtual tarboush to the term "legacy issues".  Like "legacy assets" and "non-core" assets, it's one of my favorite financial terms.