Standard Chartered files $129m suit against Sharjah-based IGPL over loan defaults
Standard Chartered has launched a US$129 million lawsuit against Investment Group Private Limited (IGPL) over two alleged defaulted loan agreements, according to documents filed in the DIFC Courts.
StanChart filed the claim against the Sharjah-based investment group in the DIFC Courts in August this year. The details have only been made public by the courts in the past days.
The bank claims in its case filing that IGPL is in default under two agreements dating from 2009 and 2010. StanChart is claiming $57.9m plus $12.3m interest for the 2009 agreement, and $48.5m plus $10.2m for the 2010 agreement.
The bank is also seeking to enforce security over an undisclosed number of shares in unnamed companies listed on the Dubai Financial Market and the Abu Dhabi Securities Exchange, pledged as security in respect of the 2009 agreement.
The first hearing in the case is scheduled for November 27.
StanChart is represented in its claim by Clifford Chance. Both declined to comment on the details of the case.
An IGPL spokesman did not respond to requests for comment. The case is understood to be linked to the restructuring of Sharjah’s Fal Oil, an IGPL subsidiary, according to a person with knowledge of the situation.
StanChart was one of Fal Oil’s largest creditors, with much of its debt thought to be guaranteed by IGPL.
“As one of the larger lenders it would make sense that if the restructuring discussions had fallen apart at whatever level, they may have a legal recourse under any one of their financing documents with Fal, to try and get some recovery of the debt that they otherwise haven’t been able to get hold of,” said the person, who declined to be named.
Attempts to restructure around Dh4 billion of Fal’s debt in 2012 were dogged by legal action against the company by at least one creditor, the seizure of a company vessel in Singapore by another creditor, and the loss of oil acting as security for StanChart.
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Published: November 15, 2014 04:00 AM