Logo of Al-Etihad Cooperative Insurance Co.
Al-Etihad Cooperative Insurance Co. received on Dec. 3 a notification from Bahrain Chamber for Dispute Resolution (BCDR) as regards the lawsuit filed against Saudi Venture Capital Investment Co. (SVC), according to a Tadawul statement.
The insurance services provider was notified that the appeal of the respondents was dismissed on lack of jurisdiction from BCDR and Bahrain courts to hear the case.
The claim filed against the respondents (one to six) was rejected due to irrelevance, and the claimant was ordered to pay attorney fees of BHD 100.
The case against the respondents (7 to 12) was dismissed, and the claimant was obliged to pay case and attorney fees requested by the respondents, which are estimated at BHD 3,000 and translation fees of BHD 376. In addition, all parties were ordered to pay the assigned expert fees.
There is no expected financial impact on the company’s profit and loss statement related to this investment portfolio as the company reflected the maximum probable loss and applied an equivalent impairment loss in previous financial periods.
There are some immaterial costs associated with lawsuit, attorney, and translation fees estimated at BHD 3,476 (SAR 34,500).
Al-Etihad’s legal department is currently evaluating the next steps to be implemented, which will be announced in due course.
According to data available with Argaam, the insurer said that the lawsuit, filed in March 2022, is related to a financial dispute about an investment.
The dispute is related to the nature of an investment worth $16.4 million, where the respondent did not satisfy Al-Etihad’s request to liquidate at maturity on the basis of illiquidity of investments despite maturity date being due.
On Aug. 2, the insurer received the decision of the General Secretariat of Committees for Resolution of Securities Disputes (GS-CRSD) on rejecting the claim filed against SVC due to lack of jurisdiction.
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