Abu Dhabi Court of Appeal upholds ruling requiring six companies to pay AED105 million to a bank

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Aya Eldib, our reporter

The Abu Dhabi Commercial Court (Appeals Circuit) upheld the judgment of the first instance court requiring the six companies to pay AED105.84 million to the bank and their legitimate interest in failing to repay that amount.

The details date back to that time, when the bank filed a lawsuit demanding AED106.5 million from seven companies.

The bank said it had approved a credit facility for Defendant 1, who provided guarantees from Defendant 2 to Defendant 7, but she stopped paying instalments when due.

In the lawsuit, the bank asked the defendants from the second to the seventh, in addition to the obligation to pay them AED 106.5 million and 3.5% of the profits from the due date to the full payment. Pay fees and attorney fees.

After appointing a banking expert, the first instance court ruled to dismiss the case against the third defendant, while requiring the other defendants, except the third defendant, to jointly pay AED105.8 million to the bank at an interest rate of 3.5% per annum until full payment.

The court also ordered them to pay fees, while all other requests were denied.