Damas justifies delay in recovering $55m

10 May 2010

(MENAFN) A statement issued by Dubai-based Damas International said that it is taking longer to recover the $55 million owed by its founders, the Abdulla brothers, due by April 30, but this delay does not mean a default, Reuters reported.

The jeweller has been ordered to sack its board and pay fines, after the accusation that the company made last year saying that its former chief has been involved in $165 million of unauthorized transactions.

Damas said in its statement that the delay was due to some complexity in transferring and selling the assets declared to the company. Damas said that it is taking more time to affect the recoveries as per the timeline mentioned in the previous announcement by the company on November 4, 2009.

However, the firm confirmed that the delay in payments does not constitute an event of default under the agreements, adding that efforts were underway to repay the amounts either in cash or by transfer of assets.

It is worth mentioning that Damas replaced its CEO and Managing Director, Tawhid Abdullah, last year after alleging that he made unauthorized transactions worth of nearly $165 million. But Abdullah has denied any wrongdoing.

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