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Kuwaiti Firm Wins a $490 Million Appeal

Kuwaiti Firm Wins a $490 Million Appeal

Thursday, 21 April, 2022 - 09:15
Kuwait's Agility announces a court ruling to compensate one of its subsidiaries (Asharq Al-Awsat)

The Kurdistan Regional Government (KRG) must pay $490 million (149.4 million Kuwaiti dinar) to Agility Public Warehousing Company as compensation, Kuwait's Agility said in a press release on Wednesday.

According to a court's ruling, the respondent must pay the appellant the amount of the loan and seven percent interest since September 11, 2007.

A lawsuit was filed by Alcazar Capital Partners, a subsidiary of Kuwait's Agility, on the grounds that on 11 September, the Kurdistan Regional Government of Iraq sent the company a letter of guarantee for a loan amounting to $250 million plus interest of seven percent.

Alcazar lent Korek Telecom this loan in order to enable it to pay the second installment of the price of its national mobile phone license covering Iraqi territory, for use as indicated in the guarantee.

As part of the guarantee offered by the Kurdistan Regional Government in Iraq, Alcazar Capital Partners has the right to file a claim against the Kurdistan Regional Government of Iraq independently.

For this reason, Alcazar has requested the involvement of the experts department at the Ministry of Justice in order to assign one of its specialized experts to review the case's file and its documents, and to issue a report on the amount AlCazar Capital Partners is owed from the Kurdistan Regional Government.

The sums include both the principal sum of the loan and the interest accrued at the interest rate determined in the guarantee, from the date of granting the loan and the guarantee to the date of payment, as well as the fees, expenses, and legal fees.

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