Commercial Bank of Dubai - Credit Bloomberg
A joint provisional liquidators’ report in July 2018 showed that stakes in Abraaj’s Infrastructure and Growth Capital Fund, funds focused on Turkey, Latin America, North Africa, Africa as well as health were held as security against Commercial Bank of Dubai’s (CBD) loans.
Wednesday 09, January 2019 BY KUDAKWASHE MUZORIWA
UAE’s Commercial Bank of Dubai (CBD) which lent around $170 million to Abraaj, will take stakes in the troubled private equity firm’s funds which were offered as security against the debt.
The move follows comes after Noor Bank got the go-ahead from the court in the Cayman Islands to take control of parts of funds pledged against its loan. Noor Bank lent Abraaj around $100 million.
The same court is expected to grant approval to swap the debt held by CBD in the coming weeks.
Abraaj Holdings and Abraaj Investment Management filed for provisional liquidation in the Cayman Islands last year in June and their provisional liquidators, Deloitte and PwC are overseeing the restructuring of Abraaj’s debt.
Abraaj was the largest buyout fund in the MENA until it collapsed last year following turmoil triggered by a row with investors, including the Gates Foundation over the alleged misuse of their money in a $1 billion healthcare fund, reported Reuters.