DUBAI (Zawya Dow Jones)–Dubai real-estate developer Nakheel said Thursday a special tribunal relating to Dubai World dismissed a contempt case against the real-estate developer.
Nakheel, the real-estate unit of Dubai government-owned conglomerate Dubai World, said in an emailed statement that an application by claimants Paramount International Trading Ltd., Diamond Developers Co. Ltd. and Fares Abu Baker was dismissed Thursday by the Special Tribunal relating to Dubai World.
The claimants had asked for an urgent hearing to deal with “an allegation of contempt of court by Nakheel on the basis that it had not complied with a previous court order following a hearing in December 2010,” Nakheel said.
The claimants had contested that “Nakheel continued to charge interest on delayed payments relating to certain Nakheel developments notwithstanding that a settlement agreement had been entered into between the parties.”
The special tribunal dismissed the application “on the grounds that issues relating to interest payments had not been decided at the previous hearing,” said Nakheel.
A Nakheel spokesperson said Thursday that “any application to prevent Nakheel from charging contractually agreed interest on outstanding payments would be strongly contested.”
Legal representatives of the claimants couldn’t be reached immediately for comment.
The Dubai World Tribunal, part of the Dubai International Financial Centre Courts, was set up in 2009 to decide on disputes related to the settlement of the financial position of Dubai World and its subsidiaries.
It had ruled last December in favor of the claimants’ motion to stop Nakheel from seeking 41 million U.A.E. dirhams ($11.2 million) in delay fees from developers related to The World and Jumeirah Village developments.
Nakheel is seen to be at the center of the financial problems that have plagued its parent Dubai World, which in October secured creditor approval to restructure almost $25 billion worth of debt. The struggling property firm late last year narrowly avoided default on a $3.52 billion bond.
-By Leila Hatoum; Dow Jones Newswires; +971-4-446-1686; [email protected];
Copyright (c) 2011 Dow Jones & Co.
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