U.A.E. Hires Adviser to Fix Top Middle East Remittance House - Bloomberg:
The United Arab Emirates central bank has hired an adviser to help sort out debt and operational issues at one of the Middle East’s largest remittance businesses, according to people with knowledge of the matter.
Alvarez & Marsal Holdings LLC is advising the central bank on the management of UAE Exchange, the people said, asking not to be identified because the information is private. The regulator last month took the rare step of assuming control over the firm’s operations in the country as its London-listed parent company, Finablr Plc, prepares for potential insolvency.
UAE Exchange plays a key role in the oil-rich nation, as it’s the biggest money-transfer business in an economy hosting millions of expatriate workers who send their salaries back home. It has branches across popular malls and business centers and is one of the largest employers in the United Arab Emirates with thousands of staff.
The company, set up by embattled Indian entrepreneur Bavaguthu Raghuram Shetty, has defaulted on about $300 million of foreign-exchange loans, people with knowledge of the matter said earlier this week. Lenders that arranged the facility -- including Barclays Plc, Goldman Sachs Group., JPMorgan Chase & Co. and Commercial Bank of Dubai PSC -- haven’t been repaid due the mounting problems surrounding Finablr, the people said.
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