Damas repays USD54.4m loans

09 May 2011

(MENAFN) Damas International’s CEO, Anan Fakhreddin, said that Middle East’s largest jeweller repaid USD54.4 million loans and would pay off the remaining debt to lenders from operational revenues, reported The National.

Fakhreddin added that after the company restructured its debts with a group of banks last week, it completed a USD816 million debt and would repay USD299 million loans over three years, in addition, it would get working capital of USD517 million.

He also said that last week, Damas signed a cascade deal by which the three brothers who ran the company previously, Tawhid, Tawfiq and Tamjid would repay USD167 million to the company and USD326 million to a group of lenders. Through the agreement, a number of secured creditors would be paid through the sale of the Abdullah brothers assets first, and then would come Damas as an unsecured lender.

It is worth noting that in March 2010, the brothers were the subject of the strictest disciplinary action in the history of the Dubai International Financial Centre for improperly withdrawing USD99 million of cash and nearly two tones of gold, valued at USD68 million, from Damas without shareholder approval.

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