Libya wins court battle over £17.6m debt relating to Banco Santander HQ

Libya’s sovereign wealth fund has won a long-running UK court battle over a £17.6m debt owed to it following a deal to buy Banco Santander’s sprawling Madrid headquarters.

The property sold last year for almost £250m while a parallel set of “labyrinth” legal disputes has rumbled on, triggered by the global financial crisis that forced its former owners, Marme Group, into administration in 2014. Its ownership was not disputed in the latest case involving the Libya Investment Authority (LIA).

Marme Group’s shareholders, Glenn Maud and Derek Quinlan, had entered into a £1.38bn loan deal to finance the purchase of the property in 2008.

Mr Maud was director of a firm Propinvest Group Limited that borrowed £11m from LIA in 2008 as part of the deal to purchase the Santander building.

But due to the financial crisis the firms were unable to refinance the loans and Marme and Propinvest entered into voluntary administration in 2014.

LIA pursued Mr Maud, who had given a personal guarantee on the loan, for the repayment of the debt which then stood at £17.6m, and in 2014 applied for a bankruptcy order against him.

But, due to EU sanctions again Libya, Mr Maud successfully applied for the LIA case against him to be stayed and only now has the case finally been concluded following the funds being release from the building’s sale.

On Friday, Mr Justice Snowden, sitting in the UK’s high court, approved LIA’s petition against Mr Maud for bankruptcy concluding it was “entirely rational”.

“Mr Maud does not dispute the existence of LIA's debt, and it formed the basis of the LIA Petition which was presented on 31 July 2014 when the debt was about €22.2 million which equated to about £17.6 million,” he said in his judgement.

“Although the LIA Petition was first in time, it was stayed for about a year in June 2015 after Mr Maud successfully applied to set aside the LIA's statutory demand against him on the basis that it would be unlawful for him to pay the debt due to the LIA by reason of EU sanctions.

“For the reasons that I have given, subject to any application that I should not make an immediate order or should order a stay pending appeal, I would intend to make a bankruptcy order in respect of Mr Maud on the LIA Petition. I shall therefore adjourn both Petitions and all consequential matters to such a further hearing on a date to be fixed.”

Mr Maud had argued the ruling would be “pointless” as he had no assets, however, the judge ruled he was not convinced Mr Maud had given a “full and complete account of his assets and affairs” due to his ongoing financing of “substantial and relentless” court proceedings in the UK and Spain.

Edgeworth Capital, which is linked to property billionaire Robert Tchenguiz, had also filed a petition for Mr Maud’s bankruptcy, claiming to be owed £35 million.

The judge said it was not necessary to make a ruling on Edgeworth’s application as he had ruled in favour of LIA’s.

Santander has continued to occupy the large campus, known as Financial City, as a tenant since selling it and is reported to pay millions of euro a month in rent.

The 250 hectare site has nine buildings including offices, restaurants and a residence for employees of the bank.

The major Hashd factions linked to Iran:

Badr Organisation: Seen as the most militarily capable faction in the Hashd. Iraqi Shiite exiles opposed to Saddam Hussein set up the group in Tehran in the early 1980s as the Badr Corps under the supervision of the Iran Revolutionary Guards Corps (IRGC). The militia exalts Iran’s Supreme Leader Ali Khamenei but intermittently cooperated with the US military.

Saraya Al Salam (Peace Brigade): Comprised of former members of the officially defunct Mahdi Army, a militia that was commanded by Iraqi cleric Moqtada Al Sadr and fought US and Iraqi government and other forces between 2004 and 2008. As part of a political overhaul aimed as casting Mr Al Sadr as a more nationalist and less sectarian figure, the cleric formed Saraya Al Salam in 2014. The group’s relations with Iran has been volatile.

Kataeb Hezbollah: The group, which is fighting on behalf of the Bashar Al Assad government in Syria, traces its origins to attacks on US forces in Iraq in 2004 and adopts a tough stance against Washington, calling the United States “the enemy of humanity”.

Asaeb Ahl Al Haq: An offshoot of the Mahdi Army active in Syria. Asaeb Ahl Al Haq’s leader Qais al Khazali was a student of Mr Al Moqtada’s late father Mohammed Sadeq Al Sadr, a prominent Shiite cleric who was killed during Saddam Hussein’s rule.

Harakat Hezbollah Al Nujaba: Formed in 2013 to fight alongside Mr Al Assad’s loyalists in Syria before joining the Hashd. The group is seen as among the most ideological and sectarian-driven Hashd militias in Syria and is the major recruiter of foreign fighters to Syria.

Saraya Al Khorasani: The ICRG formed Saraya Al Khorasani in the mid-1990s and the group is seen as the most ideologically attached to Iran among Tehran’s satellites in Iraq.

(Source: The Wilson Centre, the International Centre for the Study of Radicalisation)

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Roll of honour 2019-2020

Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain

West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership

UAE Premiership
}Winners: Dubai Exiles
Runners up: Dubai Hurricanes

UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II

UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby

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The specs

Engine: 2.4-litre 4-cylinder

Transmission: CVT auto

Power: 181bhp

Torque: 244Nm

Price: Dh122,900

While you're here

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What are NFTs?

Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.

Where to donate in the UAE

The Emirates Charity Portal

You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.

The General Authority of Islamic Affairs & Endowments

The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.

Al Noor Special Needs Centre

You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.

Beit Al Khair Society

Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.

Dar Al Ber Society

Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.

Dubai Cares

Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.

Emirates Airline Foundation

Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.

Emirates Red Crescent

On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.

Gulf for Good

Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.

Noor Dubai Foundation

Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.

- Abdullah Ishnaneh, Partner, BSA Law