A dissident shareholder has managed to stop letters of credit (L/Cs) from an Egyptian customer reaching a Canadian environmental technology company. Earth (Canada) Corporation learned that the shareholder, Mounir Wassef, whose proposals were rejected at the company's 10 January annual general meeting, has commenced legal proceedings before the Egyptian Courts against MISR Environmental Services Company. He alleges his rights as a former distributor in Egypt were violated.

These proceedings have delayed the issue of the L/Cs to Earth from MISR and its Jordanian associate pending a court hearing in Egypt scheduled for 29 March. Earth and its Egyptian attorneys are trying to bring forward the date of this hearing.

State-owned company in the dock

It appears Wassef is claiming damages from MISR on the basis that Fina Investment Corp, a company controlled by him, has apparently entered into a sale agreement with MISR for the sale of one of Earth's technologies. Earth says it was not notified of such a contract between MISR and Fina

Despite the fact that the distributor of Earth technologies at the time was Cleanoil Overseas Ltd and not Fina, Wassef obtained an injunction on or around January 13th, 2001 against MISR whereby the state-owned company's assets were frozen.