Boulder Steel Limited has announced that it received a copy of a letter from Clyde & Co, lawyers acting on behalf of The National Investor PJSC, to the Abu Dhabi Commercial Conciliation and Arbitration Centre in which TNI applies for arbitration in relation to a dispute between Boulder Steel and TNI over sums which TNI alleges are owed by the company to TNI.

The dispute arises from an agreement entered into in September 2006, which related to the provision of investment banking services by TNI in connection with the unsuccessful raising of debt and equity funds for Boulder Steel's subsidiary in the United Arab Emirates.

TNI is claiming damages of between approximately USD 735,000 and USD 13,450,000 plus interest and costs. TNI's statement of claim includes a claim for damages of USD 13,375,000 which is said to comprise a 'Success Fee' on an equity placement and a 'Placement Fee' on a debt placement that TNI were to advise on and arrange under the agreement. No such equity or debt placement occurred.

Boulder Steel considers TNI’s claims to be completely baseless and without foundation and has denied any liability to pay TNI any damages. It will vigorously defend the proceedings and the defense may include a cross claim against TNI for damages arising from their unfounded claim.