Amlak Finance PJSC is nearing a deal to restructure debt for a second time as the Dubai-based Islamic mortgage provider navigates an ongoing property slump, according to two people with knowledge of the plan, Bloomberg News reported. The company is asking creditors to reschedule repayments on $1.2 billion of loans over the originally agreed period that ends in 2026, said the people, asking not to be identified because the information is private. Most lenders have agreed to the new terms but a final deal hasn’t been signed, they said.
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Jet Airways shut down its operations on April 17 following the refusal by its lenders to advance any funds for its operations, The News Minute reported. Subsequently, State Bank of India filed an application with the National Company Law Tribunal (NCLT) to initiate insolvency proceedings against the airline company. News has now come in that Etihad Airways has expressed its interest in the resolution of the Jet Airways imbroglio.
On May 30, 2019, Dubai’s ruler, Sheikh Mohammed bin Rashid al-Maktoum, signed DIFC Insolvency Law, Law No. 1 of 2019 (the “New Insolvency Law”) into law, thereby repealing and replacing DIFC Law No. 3 of 2009, the National Law Review reported. The New Insolvency Law, and supporting regulations (the “Regulations”), became effective on June 13, 2019, and govern companies operating in the Dubai International Financial Centre (the “DIFC”).
Gulf Pharmaceutical Industries is looking to hire a restructuring adviser after cutting jobs as a ban on the medicine maker’s exports to Saudi Arabia weighs on its finances, Bloomberg News reported. The company known as Julphar replaced most of its top management and appointed new board members as it comes under increasing financial strain. The United Arab Emirates-based firm also cut about 150 jobs, or 3% of its workforce, according to a person with knowledge of the plans who asked not to be identified because they are private.
Limitless LLC asked banks to delay debt repayments for a third time as an on-going slump in property prices weighs on the Dubai-based developer, people with knowledge of the plan said, Bloomberg News reported. The company is seeking to reschedule about $600 million-worth of loans and is also asking banks for a new loan of 475 million dirhams ($129 million) to help complete existing projects, said the people, asking not to be identified because the information is private. The developer hasn’t proposed a formal restructuring plan to banks yet, they said.
On 13 June 2019, the much anticipated DIFC Insolvency Law No. 1 of 2019 and associated DIFC Insolvency Regulations 2019 (collectively the “2019 DIFC Insolvency Law”), came into full force and effect, replacing the DIFC Insolvency Law No. 3 of 2009, JD Supra reported. By way of context, the 2019 DIFC Insolvency Law applies only to entities registered and operating within the DIFC. The 2019 DIFC Insolvency Law aims to balance the needs of all stakeholders in the context of insolvency related situations in DIFC, and in doing so facilitate a more efficient and effective restructuring regime.
Dubai developer Damac is in pole position to buy troubled Italian fashion group Roberto Cavalli, a source close to the matter said on Wednesday, Reuters reported. Two other binding offers for the whole group have been submitted by Italy’s Diesel-owner OTB and U.S. brand management company Bluestar Alliance, the source said. Last Friday Cavalli said it had received five offers for the brand. The company and its private equity owner Clessidra both declined to comment.
Three additional former executives of The Abraaj Group were charged in New York in a fraud investigation into the firm’s collapse last year that was the world’s biggest private-equity insolvency, Bloomberg News reported. Former Chief Financial Officer Ashish Dave, former Managing Director Rafique Lakhani and former Managing Director Waqar Siddique were charged with multiple counts including fraud and conspiracy, in an indictment unsealed Thursday. James Margolin, a spokesman for Manhattan U.S. Attorney Geoffrey Berman, declined to say whether any of the men are in custody.
The Dubai International Financial Centre (DIFC) has enacted a new insolvency law which it said meets international best practice guidelines, International Adviser reported. The new Insolvency Law and Regulations, which comes into effect on 13 June 2019, creates a new debtor in possession bankruptcy regime which it said will place the DIFC “at the forefront of complicated debt restructurings”. Essa Kazim, governor of DIFC, said: “Ensuring that businesses and investors can operate across the region with confidence is crucial to our role in connecting the economies of East and West.
Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum issued a new insolvency law on Tuesday for companies operating in the Dubai International Financial Centre (DIFC), the largest financial hub in the Middle East, Africa and South Asia, Reuters reported. The new law, due to come into effect in August, has been issued following the collapse of Dubai-based private equity firm Abraaj, which had a DIFC-regulated entity Abraaj Capital.