Sunday, June 22, 2014
Abu Dhabi's Al Jaber Group Signs Debt Restructuring
Abu Dhabi-based conglomerate Al Jaber Group has signed a debt restructuring deal with its bank creditors, the conglomerate said on Monday, addressing one of the United Arab Emirates' last big debt hangovers from the global financial crisis, Reuters reported. Al Jaber, a family-owned group with operations in aviation, construction and retailing, had been in talks with bank creditors to renegotiate its obligations since 2011. Like many family-owned groups in the Gulf, Al Jaber looked to expand beyond its core business - in Al Jaber's case, construction - during the boom years of the mid-2000s. But it was dragged down by a poor performance in the new business, the weight of debt raised to achieve the expansion, and a slowdown in the local construction sector. No figure for the amount of debt renegotiated was given in Monday's statement, but bankers had previously said it was in the region of $4.5 billion. "This is a great milestone for both the group and the banks," Obaid Khaleefa Al Jaber Al Marri, chairman of Al Jaber Group, said in the statement. Al Jaber joins other UAE firms which have sealed debt restructuring deals worth billions of dollars, including Dubai World, property developer Nakheel and Dubai Group.
Tue., June 17, 2014