Creditor Starts Legal Proceedings for Abraaj Restructuring

A creditor of Dubai-based Abraaj has started legal proceedings in the Cayman Islands seeking the restructuring of the private equity firm’s liabilities, Reuters reported. Auctus is the second creditor, after Kuwait’s Public Institution for Social Security (PIFSS), to start legal action in the Cayman Islands, where Abraaj Holdings is registered. In a statement to Reuters from its representatives, legal firm Kobre & Kim, Auctus Fund Ltd. said it has filed an application that seeks the appointment of “court-approved professionals in the Cayman Islands” to manage the restructuring process. Auctus said it holds a large credit position in Abraaj Holdings and its investment arm, Abraaj Investment Management Limited. The moves by the two creditors come amid Abraaj’s own plan to file for provisional liquidation in the Cayman Islands before a hearing on a petition to wind up a company. Read more.