In an apparent attempt to avoid enforcement actions, the Ras Al Khaimah Investment Fund – a defaulted fund – has attempted to transfer ownership of Georgia subsidiary Sheraton Grand Tbilisi Metechi Palace Hotel managed by Marriott Group.
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Farhad Azima is an aviation executive and a citizen of the United States of America. He has requested that the Georgian Supreme Court recognize an order of approximately PS8.9 Million from the High Court of Justice of England and Wales, against the Ras Al Khaimah Investment Authority (RAKIA). RAKIA owns a Georgian subsidiary called Ras Al Khaimah Investment Authority Georgia LLC (RAKIA Georgia), which owned, until last Thursday, the Sheraton Grand Tbilisi Metechi Palace Hotel managed by the Marriott Group.
Mr Azima had been trying to prevent RAKIA’s Georgian assets from being sold, including the Sheraton Grand Tbilisi. However, last week RAKIA sold this asset to Tbilisi Hotels Holding LLC, for USD 44.8 Million, in an attempt to avoid enforcement actions. The directors of the new entity, however, are also directors of RAKIA Georgia, as well as Senior Executives of RAK Hospitality Holding LLC. These include Alison Jayne Grinnell, their Chief Executive Officer; Stefan Johann Hanekom, their Chief Financial Officer; and Donald William Bremner, their Chief Operating Officer.
Mr Azima commented
“It’s disgraceful Ras Al Khaimah is refusing to pay its English Court-ordered debts. Since almost eight months, they have owed me substantial amounts of money. I am now left with no choice but to enforce this debt. Ras Al Khaimah’s sovereign wealth fund is not respecting the rule of law. This casts a dark shadow on the investment climate. Switching ownership will not work. It is a crude way to avoid enforcement. We warn third parties not to assist RAKIA with the dissipation assets.”
In 2016, RAKIA filed a lawsuit against Mr Azima at the English High Court. They relied on documents obtained from 30GB worth of private and confidential information that had been hacked and published online. Mr Azima counterclaimed RAKIA for hacking and publishing his data.
Over the next four-year period, it became apparent that RAKIA, its advisors, and private investigators had hired them to hack Mr. Azima’s data, report the contents, and publish the information online. One investigator admitted hacking, and with others, participating in a conspiracy. Witnesses were lied to, disclosure was withheld, misleading information was rehearsed at a perjury school run by a Dechert LLP attorney at a luxury Swiss resort, and false evidence submitted to the English High Court.
In June 2022, RAKIA informed the English High Court that it would no longer be involved in the proceedings in light of new evidence. RAKIA confirmed it would honor any judgement entered against it.
RAKIA violated several court orders by failing to disclose and presenting a defense. The English High Court, on the request of Mr Azima and by Order dated 3 Oct 2023, entered judgment against RAKIA. Mr Azima was awarded indemnity costs, interest and other damages worth approximately PS8.9million.
RAKIA is still in violation of the order from October 2023 because it has not made any payment to Mr Azima. Mr Azima has taken enforcement action in Georgia as well as worldwide to prevent RAKIA disposing of its assets.
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