Wednesday, 4 April 2012

EXCLUSIVE: Firm behind 'The World' is insolvent - ArabianBusiness.com

The master developer behind Dubai’s ‘The World’ project did not receive regulatory approval to construct the man-made islands and has been unable to complete the project because the firm is insolvent, one of the development’s largest owners said during the first hearing of a US$199m legal battle this week.
Austrian developer Kleindienst Group was sued by ‘The World’, a subsidiary of Dubai government-owned Nakheel, for breach of contract in an action lodged on June 12, a legal battle that has stopped work on the Kleindienst’s US$840m resort.
In the first hearing of the case at the Dubai World Tribunal, Kleindienst’s legal representative from Davidson & Co, Mohammed Zaman QC, claimed Kleindienst deemed the contract terminated and was planning to lodge a counterclaim against ‘The World’ in order to retrieve the cash it had so far invested in the project.

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