Although investors in Dubai are termed as “potential” creditors of Alternative Capital Invest’s (ACI) funds, a conflict of law is likely to come into play during the execution of the order of the German bankruptcy court, says a legal expert.
“The ACI funds have investors in Germany, while investors in Dubai have paid for apartments in their projects.
We are uncertain how the Germany liquidator will dispose off assets in Dubai and how the creditors will be prioritised,” Ludmila Yamalova, Managing Partner, HPL Yamalova & Plewka, told Emirates 24/7.
An investor, who purchased three apartments off plan, valued at Dh2.4 million, in the Wings of Arabia project in Dubailand said he had lodged his claim with the appointed liquidator in Germany.
“I have sent our documents to the liquidator, but am uncertain on how I am going to recover my money. I paid five per cent down payment for the apartments… just hope I can recover that,” he added.
The creditors’ meeting and verification of the claims was scheduled for February 17. Emails sent to Dr Konrad of Konrad - Dr.Konrad – Richter, a lawyer retained by the ACI to represent investors in German court, were unanswered.
ACI, however, in an email sent to investors, said: “…lodging your claim under insolvency proceedings in Germany does not alter your existing contractor/legal position under the UAE laws and regulations, this intimation assistance should not be considered as to create any commitment or obligations on part of Alternative Capital Invest-GMBH (Dubai Branch) or ACI Real Estate LLC-Dubai as these are separate legal entities that do not form a part of the insolvency proceedings in Germany.”
According to Real Estate Regulatory Agency’s progress indicator report, the 45-storey tower with 486 units is currently on hold and no construction has commenced. The developer has not confirmed any completion/ anticipated completion date.
In September 2010, the German property investment firm declared bankruptcy on four of its seven funds.
Market sources said ACI was seeking new contractors for some projects such as Dubai Star tower in Jumeirah Lake Towers and Q Sami tower and Victory Bay in Business Bay.
The PKS Residences and the Mayfield Gardens projects in Jumeirah Village are on hold, as are the Niki Lauda, Boris Becker and Michael Schumacher towers in Business Bay.
Calls made to Robin Lohmann of ACI Real Estate were not answered.
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