Al Markaz advised and acted on behalf of a leading real estate co. in their settlement with three major financiers with regards to financing valued at US$ 175.8 million. This entailed negotiating and drafting the initial settlement agreements with domestic and international parties, and providing turn-key advice on the steps to be undertaken on the exercise of certain put options.
This deal was extended over three jurisdictions; Kuwait, Bahrain and Jersey. Our team successfully created an ownership structure whereby the shares of the Jersey companies that beneficially owned the assets were transferred to the lenders, while legal title to the assets was held by the mother company, which in turn held the asset on trust for the Jersey companies on certain terms and conditions. These terms and conditions were contingent on certain actions to be undertaken by government bodies in the UAE.
The Settlement Agreements were concluded with three reputable entities that provided a financial facility to the client. These settlement agreements contained a put-option in favor of the lenders which was exercisable only after a certain date. Following the lenders’ decision to exercise the put-option, certain assets had to be transferred in favor of the lenders. However, the assets (real estate) were located in UAE and the owning companies were Jersey companies. The shares of the jersey companies, which owned the assets, were transferred to the lenders; however the assets were held on trust by a mother company whose controlling shares were owned by our client.
This deal was handled by :
Ayman Nada –Vice managing partner, Partner and Head of Corporate Advisory
Nazih Hameed – Senior Associate