Thursday 30 August 2018

Abraaj restructure on smoother path following bounced cheque settlement - The National

Abraaj restructure on smoother path following bounced cheque settlement - The National:

A long-awaited out-of-court settlement in a bounced cheque criminal case against the founder of private equity firm Abraaj Group dislodges concerns of complications in the firm’s provisional liquidation, and should comfort other creditors, analysts said.

“The settlement clears things up a lot, because whenever there is a criminal accusation in the background it complicates restructuring plans and the sale of parts of the business in question,” said Richard Segal, senior analyst at Manulife Asset Management.

The embattled buyout firm – once the Middle East’s largest with almost $14 billion (Dh51.42bn) of assets under management at its peak – has faced a liquidity crisis since some investors accused it in February of mismanaging funds. Abraaj is undergoing a court-supervised restructuring in the Cayman Islands to repay an estimated $1bn of debt.

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