Kuwait Pension Fund Tries to Force Abraaj Into Bankruptcy

Kuwait’s pension fund is trying to force private-equity firm Abraaj Group into bankruptcy proceedings over allegedly not repaying a $100 million loan, according to a court document, upending efforts to save Dubai’s star investor, The Wall Street Journal reported. In a document filed May 22 in the Cayman Islands court system, Kuwait’s Public Institution for Social Security says Abraaj is “substantially insolvent” and unable to repay the loan and $7 million interest by the agreed upon date, which is Sunday. The Kuwait fund has asked the court that Abraaj’s assets be liquidated and distributed to creditors in proceedings in the Cayman Islands, where the firm’s holding company is incorporated. Read more. (Subscription required.)