The Dubai Court of Appeals has forced Abu Dhabi-listed National Bank of Umm Al Qaiwain to return $250 million in addition to interest and fees to Kuwait’s Global Investment House  in a favourable ruling for the latter, Global said in a statement on Monday.

The $250 million in question was a deposit placed by Global with NBQ in August 2008 for a National Bank convertible bond issue. Global later cancelled the planned purchase and wanted the money back. But NBQ decided it was entitled to keep it.

In April 2011, Global won a ruling to get back the original deposit from NBQ in addition to an interest of $54.6 million. In June that year, a Dubai court halted the payment after NBQ filed an appeal. In November, the Dubai Court of Cassation overturned the previous verdict and referred the case back to the Court of Appeals to rule on it once again.

Under the Court of Appeals judgment, NBQ will now have to return the money to Global at an interest rate of 9 percent. The interest alone is valued at $79 million. NBQ will also pay all costs related to the case, and all retrieved funds will be used to bolster the company’s financial situation, the Global statement said. ALB

Shaheen Pasha is Middle East Regional Editor at ALB. Follow her on Twitter: @ALB_TheBrief.

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