Palm Hills stock trading frozen on Matrouh land claim

Ahram Online, Tuesday 3 May 2011

Beleaguered property developer hit with further blow, as Matrouh's governor confiscates company land over a payment dispute

Egypt's stock exchange suspended trading in Palm Hills shares on Monday, saying it was awaiting a response from the company to a request for information regarding the company's plot of land confiscated by the governor of Marsa Matrouh.

Major General Mohamed El-Sayed, the governor of Marsa Matrouh -- a city on Egypt's Mediterranean coast -- said the governate had terminated a land agreement with Palm Hills Development and was taking back 2,229 feddans after the beleaguered property developer failed to pay its "financial dues".

Speaking by telephone with an Egyptian TV channel, El-Sayed said: "We found that the company did not comply with the contract between them and the province by not paying their dues for more than two years. This is what led to the termination of the contract."

El-Sayed said warnings had been sent to other companies in the governate: "During the coming period we will seriously address the issue of land allocated in Matrouh."

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