Postponing Al Futtaim settlement till July 2012

Big 5

Sources declared postponing the settlement contracts signed between government and a group of investors till the next July, as these investors – such as Damac and Al Futtaim – were sued judicially for acquiring land spots with non-real prices.

Sources recommended that postponing the signing of final contract of settlements; was caused by the political instability witnessed in Egypt, and the preoccupation of all political forces by choosing the committee that will write the constitution, besides the presidential elections.

To be mentioned that clauses of these settlements were agreed upon, and scheduled to be signed by the beginning of next April.

Dr. Mohamed Mekkawy – General Manager of Al Futtaim company- told “Amwal Al Ghad” during an exclusive statement, that it was expected that signing the settlement contract to happen within the next week, in exchange of paying a price difference that reaches 240 million dollar, however the addressed committee of finishing this file has not informed the company of postponing the contract or anything till now.

Mekkawy denied that the delay pushes the company to sort to the international arbitration, because the company owns the enough trust in the Egyptian government, and its ability to take the right decisions, that should work for the interest of the Egyptian economy.

He added that there are 5 banks – the most prominent are HSBC, CIB, and Arab African- agreed with company in earlier time to arrange a loan of 2 billion EGP, as the company will use this finance to establish a trading center “Mall” in New Cairo, and he added that company is waiting for signing the settlement with the government, so as to get the loan.

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