Al Etihad Cooperative announces developments related to lawsuit filed against Saudi Venture Capital

Al Etihad Cooperative Insurance Co. announced on Monday that it received notification of the issuance of the ruling regarding filing a lawsuit against Venture Capital Bank B.S.C. (c) (Closed) and Saudi Venture Capital Investment Co., their Board of Directors and Managers, for the same ongoing dispute, at Bahrain Chamber for Dispute Resolution for the case referred outlining the following resolutions:

First: Dismiss the defense raised by the opponents with the Bahrain Court’s international lack of jurisdiction in the case.

Second: Dismiss the defense raised by the opponents with the Bahrain Chamber for Dispute Resolution lack of authority to attend the case.

Third: Dismiss the case raised by the company against the opponents (1 to 6) due to irrelevance and oblige the company to pay an amount of BHD 100 for attorney fees.

Fourth: Dismiss the case raised by the company against the opponents (7 to 12) due to disagreement with basis of dispute and oblige the company to pay case fees and attorney fees requested by the opponents, which is estimated to BHD 3,000 in addition to translation fees of BHD 376 and obliged all parties to pertain the assigned expert fees respectively.

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 fees, attorney fees, and translation fees estimated to be 3,476 Bahraini Dinars, equivalent to 34.5 thousand Saudi riyals.

This comes with reference to the Company’s announcement published on (Tadawul) website on 10-03-1444H, Corresponding to 06-10-2022 regarding the decision issued in the lawsuit filed by Al Etihad Cooperative Insurance Co. against Saudi Venture Capital Investment Company, in which the lawsuit was dismissed due to lack of jurisdiction, and the subsequent update published on (Tadawul) website on 03-06-1444H Corresponding to 27-12-2022G regarding filing a lawsuit with the Bahrain Chamber for Dispute Resolution against Venture Capital Bank B.S.C. (c) (Closed) and Saudi Venture Capital Investment Co., their Board of Directors and Managers, for the same ongoing dispute.