Damas to restructure $816.6m debt

21 Dec 2010

(MENAFN) Damas International, the largest gold and jewellery retailer in the Middle East, said in a statement that it is in the final stages of negotiations to solidify a framework to restructure its debt, valued at $816.6 million, The National reported.

Damas is trying to reach an accord with the Abdullah Brothers Group, Damas Real Estate, Damas Investments and its twenty bank creditors and lenders to sign a debt restructuring deal, after its then-chief executive, Tawhid Abdullah, stepped down from his post after disclosing unauthorized transactions valued at $167.1 million in deals which included property investments such as a shopping mall in Turkey and about two tons of borrowed gold.

According to the statement, the restructuring deal, known as the Cascade Agreement, will provide the legal framework for the orderly liquidation and realization of cash proceeds from the sale of the assets of the Abdullah Brothers Group. It is intended to maximize recoveries for Damas and its other creditors by allowing the assets of the Abdullah Brothers Group to be sold with their cooperation at the market value over a period of time.

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