The KWD 38 million debt settlement completed by Al-Safat Investment Co. (ASIC) is facing a legal problem, as the company failed to prove its ownership of some shares used in the settlement.

On July 15th, ASIC had reached a settlement agreement with a creditor. Under this agreement, the company will waive five portfolios of listed and unlisted stocks. However, the ownership of some shares proved to be disputable between ASIC and a UAE company.

The dispute revolved around more than 9.5 million shares of Al-Qudra Holding – unlisted firm in Abu Dhabi. These shares were estimated in the settlement agreement at over KWD 7 million. An independent portfolio should have been opened for these shares in the name of the creditor, on condition that such portfolio will be managed by ASIC.