As promised, what follows is a detailed timeline (with links!) about the convertible bond Shuaa Capital issued to the Dubai Banking Group in 2007. You'll have to thank The National's super-organized Travis Pantin for this one:
June 24
Shuaa announces plans to issue a Dh1.5bn convertible bond to Dubai Banking Group. Shuaa shares trade at Dh5.31. (
)
November 7
Shuaa issues Dh1.5bn of convertible notes to DBG. On Oct 31, 2008, DBG says it will convert the bond into 250m shares at Dh6 a share, giving DBG a 32 per cent stake in Shuaa. Interest on the bond is set at 6 per cent per year. (
)
May 22
Moody's gives Shuaa a high credit rating, on assumption of Dubai government support, via DBG. (
)
August 10
Shares in Shuaa trade below Dh6 for the first time since the bond was issued. Anywhere below Dh6 per share, DBG takes a loss when it turns its Dh1.5bn in convertible notes into shares on the appointed date of 31 October.
September 15
Lehmann Brothers collapses.
September 29
Shuaa sends a letter to DBG stating its
the bond into shares on October 31, 2008, despite the fact that Shuaa shares have fallen to Dh4.16.
October 31, Friday
Bond due to convert into Shuaa shares, but markets are closed for the weekend. Investors await news. Shuaa shares closed Thursday at Dh2.7.
November 2, Sunday
Markets open and the DFM
of Shuaa over a lack of clarity about whether the bond has been converted. Shuaa shares remain frozen at Dh2.7.
November 3
Both companies agree to extend the bond for another year, to 31 October 2009, with the option of extending for an additional year after that, pending Shuaa shareholder approval. The extended bond will still be converted into shares, just as before. (
)
Shares resume trading.
December 22
Shuaa schedules shareholder meeting (
) for January to discuss extension of bond. Meeting is
for lack of a quorum.
A wrap up of the situation so far
.
February 15
Shuaa reports a
of Dh949m for 2008.
March 1
After delays, Shuaa shareholders approve one-year extension of the bond (
).
April 14
Regulators force Shuaa shareholders to consider closing of the firm, in compliance with
regulatory formalities relating to
the magnitude of Shuaa's 2008 net loss.
April 15
Shuaa shareholders vote to
. (
)
April 16
Moody's
, with rating outlook negative, over seeming lack of support from DBG.
May 26
Shuaa and DBG
for reaching a final agreement on the bond until June 4. (
)
June 4
No new agreement reached.
June 7
Deadline for reaching an agreement
, this time until June 15. (
)
June 16
• Shuaa says it has issued 250m shares to DBG (
,
,
letter from Shuaa to regulator
)
• DBG says it's not converting the bond (
letter from DBG to DFM chairman
)
• DFM replies (
)
• Regulator responds (
)
