Al Barakah declares insolvent

[pisandre]

Bad news boys....

Al Barakah property development company with projects in Dubai and Ajman yet to take off the ground, has told investors it is insolvent, The National has reported. Lawyers acting for the company told investors in a meeting that the company had at least Dhs400m unsecured liabilities. Burj Manara Ajman in Marmooka City, billed as the tallest tower in Ajman was one of its projects.

Source AMEinfo

 

[sasherwani2]

I wonder if the UAE govt knows that there are 600m dirhams worth of investments at stake with this company? It certainly seems to do nothing about it. Imran is still in hiding and his family shops around malls as if nothing has happened.

 

[georgihh]

I wonder if the UAE govt knows that there are 600m dirhams worth of investments at stake with this company? It certainly seems to do nothing about it. Imran is still in hiding and his family shops around malls as if nothing has happened.

How about Al baraka comes back starts the construction and ask for more money
You guys what are you going to do?

 

[sasherwani2]

Trust me it wont

 

[kr2480]

Al Barakah

How about Al baraka comes back starts the construction and ask for more money
You guys what are you going to do?

I don't know what everyone seems to think will happen here but from what I have learned from the lawyers it will take years to dissolve his assets and then maybe we will get money. In Europe or the US the man would declare bankruptcy and his assets would be divided but since there is no bankruptcy law in the UAE he is in hiding because of bounced checks. In the meantime his partners cant do anything on any of the projects to help those who have purchased but everything needs his signature. Its a no win situation. I am not defending him but how can he fix it from hiding. All of the investors need to find a solution that will allow him to come out and fix it. I lost alot of money too but all we do is talk. We need action now not three years from now.

 

[financier888]

I don't know what everyone seems to think will happen here but from what I have learned from the lawyers it will take years to dissolve his assets and then maybe we will get money. In Europe or the US the man would declare bankruptcy and his assets would be divided but since there is no bankruptcy law in the UAE he is in hiding because of bounced checks. In the meantime his partners cant do anything on any of the projects to help those who have purchased but everything needs his signature. Its a no win situation. I am not defending him but how can he fix it from hiding. All of the investors need to find a solution that will allow him to come out and fix it. I lost alot of money too but all we do is talk. We need action now not three years from now.

I am not aware of the facts connected to this - but from a legal point of view - if the guy sincerely wanted to wind-up his firm and proceed with an orderly liquidation of his assets - he would simply provide a power of atty to his law firm / trustee - as such, he wouldn't need to personally sign. (and there may be other legal remedies / provisions as it relates to individual that 'goes missing' and is a fugitive....) It's unfortunate that there are no laws for bankruptcy which forces people to flee like this and I am sure we will see many more... I am sure this will change. It's hard to believe for a firm this size that his partners don't have provisions in their shareholder agreements that would cover this. ?

But for the investors, the more time it's dragged out the better it will be, becuase it will take months for the market to turn around.. The longer the better actually. good luck !