20 February, 2009

Emaar-owned John Laing Homes files for Chapter 11

Story here

6 comments:

hemlock said...

$1.6 billion down the drain. sucks to be be emaar right now.

theparv said...

I'd hate to be the guy that picked that horse.

Proud Emirati said...

This is the consequence of investing in countries that are turning to a sewage.

Anonymous said...

This is the consequence of investing in countries that are turning to a sewage.

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I agree, I'm glad I kept my money here in Dubai with it's pristine beaches and developments like international city.

Anonymous said...

well the ego that Emaar chiefs lived made them unware of business reality. When the crisis occured Emaar let go many of their employees; these employees who stood by the side of Emaar in growth and during the difficult time. Emaar simply dumped these employees once they had a problem. No one can trust Emaar anymore. They are thinking to get rid of more of their people in other countries. Also they reduced the salaries of their employees

Anonymous said...

The problem with Emaar is that they never listened to good advice, but took the low road even when it was a road to perfidy. The John Laing Homes deal was cooked by an Executive Director, Rob Booth, who was merely looking to create a nest in North America, and paid no heed to his then CEO boss who limited the deal to a mere $75m. No, he sold the chaieman a pig in the poke and they shelled out more than a billion dollars plus another billion $ in loans. All down the tube. They went into the Indian deal, going by the nefarious advice of Veekay Gombar, still CEO despite his abysmal record (pays to be trusted by Abbar). That Indian deal is worth nix, altho it sits in the books at close to a value of a billion $. Thats two billion to be written off, and they have so far written down only about $500 million of JL Homes. Tough days ahead for shareholders??

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