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FINANCIAL NEWS
Zain Iraq earnings to be blocked due to lawsuits
16 Jul 2014
(MENAFN) An Iraqi court has lifted a freeze on future revenues of Zain Iraq although previously frozen revenues remain blocked, Kuwaiti parent Zain said on Tuesday, after a USD4.5 billion lawsuit against the firm was dismissed this month, Gulf News reported.
In April, Zain’s Iraqi unit was being sued by a local telecommunications firm over the USD1.2 billion acquisition of rival operator Iraqna from Egypt’s Orascom Telecom in 2007.
An Iraqi court in January ordered Zain Iraq’s revenue from subscribers obtained through buying Iraqna to be placed under a legal guardian and in an Iraqi bank until the case was resolved.
Those restrictions have now been lifted, a statement to the Kuwaiti bourse said on Tuesday, but in a separate e-mailed statement Zain said this referred only to future revenues, not those already frozen as per the January court decision.
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