Tuesday, October 02, 2007

Blue City shareholders lawsuit

Today I was searching for information on The Blue City project and I mistakenly went to www.bluecityoman.com, which is apparently an alternate website which has only press releases from the project, and read this very interesting "letter to stakeholders." Unfortunately, the letter is in PDF format so I can't copy it here. It is a letter from the CEO of Blue City 1 SAOC, the SPV which is building phase 1 of the project. Apparently, Cyclone LLC, the Omani company that started the project, is 30% shareholder in a company called Ocean Developments SAOC. They are now suing to takeover the shares owned by the Bahraini company AAJ Holdings, which owns the remaining 70%. Ocean owns a company called Al Sawadi Investments and Tourism LLC (ASIT), which in turn is the owner of Blue City 1, which is the borrower and developer, and Blue City Phase 1 Land Company Limited, which owns the Phase 1 site, and Blue City Future Phases Investment Company Limited, which owns the remainder of the Blue City land "included in the security available to investors."
Cyclone is asking for a right to acquire the shares in Ocean currently owned AAJH arising from the circumstances in which the ASIT were originally acquired by AAJH. Shares in ASIT were subsequently exchanged by Cyclone and AAJH for their current holding of shares in Ocean.

If the claim is successful, Cyclone will emerge as the sole shareholder in Ocean. Cyclone is an Omani company wholly owned by Omani shareholders.
AAJH has always been at front and center of the Blue City project. How come the Omani shareholders now want them out? This reminded me of a post in newsBriefsOman about the owner of AAJH, Ahmed Abubaker Janahi, and further of news earlier this year of a lawsuit filed involving one of the financiers of the Blue City project. One of the interesting details in that lawsuit was that AAJH had been declared bankrupt!

What's going on? Of course this is the kind of news that never gets reported in Oman.


illogicist said...

Interesting indeed...would like to hear more about it, if u get any info.

Anonymous said...

this project was always murky and destined for failure. watch the bonds default when there are not enough property sales.

Mohammed said...


halmahruqy said...

The Omani courts have issued their judgement on the case in favour of the Bahraini partner. Lets us now hope that the Omani partners will come to their senses and focus on developing the project instead of being greedy and spoiling the name of our country in the process.

Majid alshaibani said...

thanl u about this info

i more info about blue city

if u have >> send it for me


my regardes

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