First Abu Dhabi Bank to auction Al Jaber's #Dubai Shangri-La hotel: sources - Reuters

First Abu Dhabi Bank to auction Al Jaber's Dubai Shangri-La hotel: sources - Reuters:

First Abu Dhabi Bank (FAB) (FAB.AD) has started an auction process for a Dubai hotel operated by Shangri-La and owned by indebted construction group Al Jaber with a starting price of 700 million dirhams ($190.59 million), two sources said.

Al Jaber, best known as a contractor but with interests across a range of sectors, has struggled since a construction downturn in the United Arab Emirates after the global financial crisis.

The auction by First Abu Dhabi Bank, which is the main lender for the Shangri-La hotel, marks a first step by creditors to recover funds after delays to a restructuring agreement for 5.9 billion dirhams of debt last year, one of the sources said.

Al Jaber declined to comment when contacted by Reuters on Thursday and FAB was not immediately available for comment.