Damas announced this lawsuit on NasdaqDubai earlier today.
There is a mention on pages 46 and 75 of "Al Manara" in Damas' 2008/2009 financials in reference to a 49% owned JV.Damas International Limited (the Company) stated today, that it received a legal notice from Al Manara Jewellery on 10 May 2010, notifying the Company and one of its subsidiaries Damas Jewellery LLC, of a claim filed before the Abu Dhabi Courts for AED 114.7 million in relation to one of the joint venture business that the subsidiary had participated in Abu Dhabi, UAE.
The civil suit filed by the JV partner claims compensation of an apparent breach of the joint participation agreement that the subsidiary of Damas had signed when establishing the venture. The Company firmly believes the case to be without merit and intends to vigorously defend its interests related to this civil action.
Probably an issue of failing to meet a cash call - no doubt motivated by its current cash position.
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[again I implore you to find a Tip link to put on your homepage :) ]
Saw this interesting (albeit outdated) post on Global and the whole Mazaya Saudi, Dubai Capital issue.. thought you might find it interesting.
http://om9edda.blogspot.com/2010/05/blog-post_12.html
TRC
Thanks yours.
As to the tip link, the only suggestion I've had so far is an email link. I want to think about that.
As to MS, this appears to be similar to Global MENA Financial Assets in terms of funding. I'm trying to find a bit more - but it's been slow going.
It's not just in the GCC that good publicity has built many an impression of good business. The story of GFH is similar.
Al Manara is (or was) a very well connected company in Abu Dhabi terms. Damas will not be able to shrug this off by delay.
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