Cairo-Mubasher: The Economic Court decided on Saturday to adjourn till March 7 the hearing of a lawsuit filed by shareholders in Egypt’s foodstuff producer Ajwa Group for Food Industries for indemnity against the loss from the period of suspending the company’s stock from trading on the local market.
Khalid Al-Gharabawi, a lawyer and shareholder at Ajwa, said this case was filed by some shareholders after a ruling was issued against former Managing Director Mahmoud El Sayed Abdel Fattah who was ordered to pay damages for the period of halting the stock.
The stock resumed trading in mid-October 2014 after being stopped for more than three years.
Ajwa crisis began in late 2009 when the company announced adjusting its listing status through the sale of nearly 1 million shares a free float by the company’s owner Eissa Al Jaber. However, Al Jaber surprisingly sold nearly 40 million shares, capitalizing on getting hold of insider information and through posting inaccurate data that push Ajwa stock to EGP 98 from EGP 25, after which the stock plunged to EGP 2 level.