Cedar Mundi (Holding) SAL v Attieh & Ors [2025] EWHC 1930 (Comm) (25 July 2025)

IntelBrief: Sanctions Intelligence Digest

Cedar Mundi (Holding) SAL, a Lebanese venture capital fund investing in Lebanese tech startups, is engaged in consolidated litigation with several defendants including members of the Kuwaiti Al Bahar family and related entities.
The dispute centers on alleged unauthorized and fraudulent transactions involving the transfer and sale of Cedar Mundi’s portfolio assets, including a Portfolio Preservation and Continuity Agreement (PPC Agreement) and a Sale and Purchase Agreement (SPA).
The case highlights the impact of Lebanon’s financial crisis on cross-border capital flows and the complex interplay of Lebanese, English, and BVI law in commercial disputes involving Middle Eastern investors.

The case implicates entities and individuals linked to Lebanon and Kuwait, jurisdictions subject to varying US, UK, and international sanctions regimes.
The PPC Agreement and SPA involve transfers of assets and funds potentially affected by restrictions on Lebanese financial institutions and capital controls.
The Defendants include Kuwaiti nationals and entities, raising potential scrutiny under UK and US sanctions laws, particularly regarding the transfer of US Dollars and ownership interests.
No direct sanctions violations are alleged, but the financial crisis and capital transfer restrictions in Lebanon increase the risk of inadvertent sanctions exposure.

Continued financial instability in Lebanon may exacerbate difficulties in transferring funds internationally, impacting enforcement of judgments and asset recovery.
The unresolved ownership and control disputes over portfolio assets increase counterparty risk for third parties dealing with Cedar II and related entities.
Allegations of fraud and unauthorized transactions raise reputational and regulatory risks for involved parties, especially in cross-jurisdictional contexts.
Potential for expanded litigation or regulatory investigations in the UK, Lebanon, or BVI given the complex corporate structures and cross-border elements.

Lebanon’s ongoing financial crisis and capital controls remain a critical backdrop, affecting investor confidence and cross-border investment flows.
Kuwaiti involvement through the Al Bahar family links the dispute to Gulf regional financial interests, with implications for GCC-Lebanon economic relations.
The UK court’s jurisdiction and application of English law underscore London’s role as a key venue for resolving Middle Eastern commercial disputes.
US and UK sanctions frameworks indirectly influence transaction structuring and dispute resolution, reflecting broader geopolitical tensions involving Lebanon and Gulf states.

Cedar Mundi’s inability to access freely transferable US Dollars due to Lebanon’s crisis materially affected capital calls and fund sustainability.
The SPA’s valuation and payment terms were adjusted downward due to inability to transfer interests in Lebanese entities, reflecting market and regulatory constraints.
The dispute involves approximately US$25.6 million in portfolio assets, highlighting significant capital at stake amid regional financial instability.
The case illustrates challenges in venture capital and private equity investments in Lebanon’s distressed economic environment.

Parties and investors should conduct enhanced due diligence on Lebanese and Kuwaiti counterparties, focusing on sanctions compliance and capital transfer risks.
Legal strategies should anticipate protracted cross-jurisdictional litigation and potential enforcement challenges due to Lebanon’s financial controls.
Consider engagement with regulatory authorities in the UK and US to clarify sanctions exposure related to Lebanese financial transactions.
Monitor developments in Lebanon’s financial crisis and related sanctions policies to adjust risk assessments and investment decisions accordingly.
Leverage London’s legal infrastructure for dispute resolution but prepare for complex evidentiary and jurisdictional issues given the multi-jurisdictional nature of the case.

---

**Source Notes:** Cedar Mundi (Holding) SAL v Attieh & Ors [2025] EWHC 1930 (Comm)

https://empyreanprotocol.com/litigation/view/www.bailii.org/ew/cases/EWHC/Comm/2025/1930.txt