In a landmark ruling, the Kuwaiti Court of Cassation has dismissed Kurdistan Regional Government’s appeal against a previous judgment favoring Alcazar Capital, a subsidiary of Kuwait-based Agility. Upholding the earlier ruling by Kuwait’s Court of Appeal, the court affirmed that Kurdistan must pay Alcazar USD490 million as restitution under a sovereign guarantee.
The legal battle stems from Agility’s investment in Korek Telecom, an Iraqi telecommunications firm, over 15 years ago. Kurdistan had issued a sovereign guarantee safeguarding Agility’s investment, promising reimbursement if Korek defaulted. When Iraq expropriated Agility’s Korek investment and Korek failed to repay Agility, Agility invoked the KRG sovereign guarantee, leading to the lawsuit.
This recent verdict follows Meysan‘s previous success in an ICC arbitration against Korek Telecom and its Chair, Saber Sirwan Barzani, resulting in a USD1.6 billion award against the defendants.
The Meysan team was represented by partners Bader El Jeaan, Waleed Al Tattan, Husain AlAbdullah, and Ahmad Awni (all pictured left to right).