The Al Jaber Group is seeking to restructure debts of up to Dh6 billion (US$1.63bn) and has appointed KPMG as a financial adviser as negotiations with creditors begin, according to bankers close to the talks.
One banker said the family-owned conglomerate would seek a standstill on payments ahead of trying to restructure its debts, said to be caused by a "mismatch" between payments and receivables.
The effect of the downturn in the UAE's property market on Al Jaber Group's construction activities was said to be one reason for the conglomerate's troubles.
The next step would be forming a steering committee to ensure that the debt was restructured "equitably", with the delay on debt repayments likely to be the biggest issue, the banker said.
An executive whose bank has some exposure to Al Jaber Group said the deal was being looked at carefully.
Al Jaber was "a very important player in the industry of Abu Dhabi", he said, suggesting the impact of the restructuring could be felt throughout the emirate's economy.
In light of the announcement on Sunday by the conglomerate, previously thought to be among Abu Dhabi's strongest private-sector companies, UAE banks are trying to determine whether new provisioning is needed.
Jaap Meijer, a financial analyst at Alembic HC Securities, said making comparisons was difficult, but that if restructurings at Dubai World and Dubai Holding were used as a model, banks "might see 10 to 15 per cent provisioning on their exposure, if they reduce the interest rates and extend maturities".
Lenders with exposure include Emirates NBD, Mashreqbank and Abu Dhabi Islamic Bank, all of which declined to comment.
Al Jaber Group has Dh1.39bn of loans maturing next year, according to Bloomberg data, with Dh1.46bn due in 2013. The total debt said to be under negotiation exceeds what was previously announced by the conglomerate.
National Bank of Abu Dhabi and Al Hilal Bank may also have some exposure as the result of a $42m deal with Al Jaber Aviation in November last year to finance the purchase of two Embraer Legacy 600 private jets.
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
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