An economic court in Cairo has rejected a lawsuit filed by businessman Samih Sawiris, chairman of Orascom Hotels and Development (OHD), demanding the bankruptcy of Falcon Hotels.
Sawiris filed the case on the grounds of a $20 million debt he says Falcon Hotels owes OHD.
The court, however, rejected the case due to a dispute over the veracity of documents describing the debt. With non-payment unable to be proved, the court lacked the vital component for declaring Falcon bankrupt.
Sawiris had demanded the company be declared bankrupt, seal its premises and appoint bankruptcy judges and an agent of the creditors. He said Falcon first defaulted on payments in August 2009.
Earlier this month, Egyptian banks asked OHD, a subsidiary of Orascom Development Holding, to revise the terms and conditions for its LE850 million of outstanding loans.