Jabal Omar contract cancellation void: Jadwa
Riyadh, April 30, 2009
Saudi investment bank Jadwa Investment said on Wednesday the cancellation of its financing contract by Jabal Omar Development Co was 'void' and it may seek reimbursement for any resulting losses or damages.
Jabal Omar announced earlier on Wednesday it had terminated the contract with Jadwa, under which the bank was meant to arrange $3.3 billion in financing for a real estate project in the Saudi holy city in Mecca.
'Jadwa ... maintains its lawful rights as set forth under the general statute and per the agreement signed with Jabal Omar...' it said in a statement emailed to Reuters.
'Jadwa reserves the rights for reimbursement and indemnification for any losses or damages arising from the unilateral termination of this agreement.'
Jadwa had been meant to secure both long-term financing through the issue of a sukuk -- the Islamic alternative to conventional bonds -- and short-term financing.
Jabal Omar earlier said in a statement on the Saudi bourse website that it had terminated the contract because Jadwa had failed to secure the financing on schedule.-Reuters