Asset tracing and investigation into a construction company’s subsidiaries and affiliates, identifying unauthorized transfers of shareholdings.
Jurisdictions involved in this assignment
Saudi Arabia, UAE, Lebanon, UK, France, Turkey, South Africa, and Tunisia.
The business and background
A construction company based in Saudi Arabia with financial and real estate assets around the world.
What we did
Our team in the Middle East were retained by a court-appointed Liquidator to liquidate a major business conglomerate in the region and recover as much value as possible to pay off the company’s significant debt.
Due to the contentious nature of the liquidation, the Liquidator was unable to understand the structure and assets of the company. From the limited company records, it was clear that value had been stripped from the company over the last decade.
The outcome
Over 50 corporate entities were identified as part of our investigation, creating a map of the conglomerate’s complex corporate structure, which was previously unknown to the Liquidator. Assets including financial and real estate assets in France, Turkey, the United Arab Emirates and Saudi Arabia.
Several significant issues were identified by Quantuma during our investigation. Unauthorized transfers of shareholdings were identified which resulted in a material loss to the parent company and its creditors. These transfers represent fraudulent conveyance by the management of the company to put assets beyond the reach of creditors. We continue to work with the Liquidator to ‘claw back’ these transfers and maximize recoveries.
