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Petition to dissolve MECL accepted

MUSCAT — The Primary Court of Muscat has accepted a petition filed by Jumbo Electronics, Dubai, the largest shareholder in Muscat Electronics Company (MECL) to dissolve MECL, according to a statement issued here yesterday by Jumbo Electronics.

Muscat-based Fincorp Group, one of the two Omani partners in MECL, said they would appeal the court decision. "We confirm that we have filed for dissolution of Muscat Electronics before the Primary Court in Muscat and that the honourable court has found it fit to order the dissolution of MECL," the statement said, adding: "We were forced to take this step due to irreconcilable differences among the partners which make it impossible for Muscat Electronics to achieve its objectives." Since 1979, the statement said, Jumbo had managed Muscat Electronics and brought to the company agencies such as Sony, Supra, Ricoh, Chigo and Daikin "and have delivered, consistently, superior returns to the shareholders. "However, following takeover of management and control of Muscat Electronics by Dr. Mohammed Musa of the Fincorp Group (formerly the Al Yousef group) in September 2006, in breach of shareholders' understanding, we have had no option but to seek dissolution of the company. We believe this is in the best interest of the company, its employees, lenders and creditors".

A spokesman for Fincorp Group, meanwhile, noted that the judgement was not final. "We have the right to appeal, first to the Court of Appeal and, thereafter, if necessary, to the Supreme Court."