Damas set to sign formal Dh4bn debt standstill

Damas, the region’s largest jewellery company, is close to signing a debt standstill on up to Dh4 billion (US$1.08bn) it owes, and asset liquidation has begun, informed sources say.

An informal standstill on principal payments on its loans involving more than 20 banks has been in place since November.

Damas is working towards an official agreement, under which it will defer its principal loan payments until May 31 but still accrue interest, the source said.