White Bay investors may get their money back
Liquidators of Al Murjan Real Estate, the company behind a $3 billion White Bay project in Umm Al Quwain, have called a creditors meeting on April 3.
“The creditor meeting is scheduled for April 3 at 12.45am,” according to legal firm HPL Yamalova & Plewka JLT, which is representing two investors in the insolvency proceedings.
“One of our investor got a call from the liquidator’s office,” said Ludmila Yamalova, Managing Partner of HPL Yamalova & Plewka JLT, who is now seeking an official invitation to the meeting.
Another investor, who bought two apartments in the project, said he hasn’t heard anything since speaking to the liquidator’s office in January.
“They told us they would send an invitation in February, but we haven’t heard anything,” he added.
In November 2010, Al Murjan filed for bankruptcy after running into financial difficulties.
The company filed for insolvency in Sharjah and two liquidators - Ala Al Khazaie and Ahmad El Ghandour were appointed court liquidators for the company. In its liquidation filing, Al Murjan said: "The company started its activity and faced difficulties in the execution as the Department of Planning and Survey in Umm Al Quwain has, without any justification, rejected activation of the guarantee account; dividing the project's land according to the main plan which was submitted by the company and formally approved by the department.
It added: “This also comes at a time when nearly 50 per cent of the buyers failed to pay the amounts due on them. This has affected the company's capability to obtain finance from banks despite approval of Mashreq Islamic Bank to finance the buyers. The company's management has succeeded in obtaining finance from the main contractor to complete the project in return for mortgage of an unsold land to ensure the payment.”
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