Abraaj is currently being restructured in the Cayman Islands.
Thursday 03, January 2019 BY KUDAKWASHE MUZORIWA
Noor Bank, which provided a $100 million loan to the collapsed Abraaj Group has won the right to swap the debt for stakes in some of the Dubai-based buyout firm’s funds, reported Bloomberg.
The lender won approval from a court in the Cayman Islands, where Abraaj is undergoing a supervised restructuring, to take ownership of stakes in the funds that were pledged against the loan, the people said, asking not to be identified because the process is private.
Noor Bank will hold the stakes alongside other investors and limited partners and the bank may eventually be able to recover more than it lent to Abraaj when the assets in the funds are sold.
Abraaj was one of the most high-profile private equity companies in the Middle East until its dramatic collapse last year. The firm owes banks more than $1 billion and is being restructured after it defaulted on loans and was found to have borrowed money from some of its own funds to meet operating expenses without investors’ consent, people with knowledge of the matter have said.
Court-appointed liquidators are now seeking to sell its funds and assets to repay investors.
Other creditors to Abraaj include the Kuwait Public Institution for Social Security, Mashreq bank as well as Sharjah-based Crescent Group Chairman Hamid Jafar, Commercial Bank of Dubai, Societe General and Air Arabia.