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FINANCIAL NEWS
Nakheel to cash USD52.2m from contractors: Tribunal
19 Apr 2011
(MENAFN) A judge at the Dubai World Tribunal ruled that the government-owned developer, Nakheel, is allowed to cash up to USD52.2 million of advance payment guarantees posted by the contractors Al Shafar General Contracting and Nurol, reported The National.
The judge said that Nakheel could get back money it paid in advance for construction contracts that were cancelled after the global financial crisis.
The two contractors had previously requested from the Dubai World Tribunal to ban Nakheel from cashing in advance payment guarantees they took out with local banks.
It is worth noting that Dubai World Tribunal is a judicial body that was established to handle legal claims against Dubai World, Nakheel’s parent which had been struggling with severe debt after the global financial crisis.
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