One of the creditors of Abraaj Group, the buyout firm facing allegations of misusing investors’ funds, has filed a petition in a Cayman Islands court seeking liquidation of the company – a move that threatens to disrupt debt standstill talks with other Abraaj creditors and its bid to sell part of its business. Kuwait’s Public Institution for Social Security (PIFSS), an unsecured creditor of Abraaj, on June 6 filed the petition in the Grand Court of the Cayman Islands, where Abraaj Holdings is registered, according to a notice in the Cayman Gazette, which lists legal cases. A secured creditor is a lender or creditor that extends capital or is associated with an investment that is backed by collateral.
“The funds invested in Abraaj Holdings belong to the hard working people of Kuwait who have entrusted us to invest their monthly savings so that they can retire comfortably when they decide to," said PIFSS director general Hamad Al Humaidhi in a statement. "We have a legal, fiduciary, and an ethical responsibility to see this case through till the end and return these funds, and secure the best possible outcome for our subscribers and pensioners."
The PIFSS decision to file the petition follows Abraaj's default of a $100 million loan that was due on June 3. PIFSS, which started its relationship with Abraaj in 2004 and by 2013 had made $731.8m in investments and loans to the firm, has since gotten back $346.2m from the private equity company.
Abraaj, the biggest Middle East private equity firm, is in talks for a credit freeze agreement with its secured creditors, however, the court proceeding may create problems for the company.
“The hearing raises the prospect of a court-ordered liquidation regardless of the consensual standstill agreement with other creditors,” said Khalid Howladar, managing director of credit and sukuk advisory Acreditus.
Abraaj acknowledged the filing in an emailed statement on Thursday. “We are aware of the filing in the Cayman Islands by a single creditor and we continue to engage closely with them to reach a consensual outcome for the benefit of all parties,” the statement said.
The Middle East’s biggest buyout company, which at its peak had more than $13.6 billion (Dh49.96bn) of assets under management, is reeling from allegations of misusing funds in a healthcare investment vehicle that deployed capital from investors including the Bill & Melinda Gates Foundation, the World Bank’s International Finance Corporation, the UK’s CDC Group and Proparco Group of France.
The Wall Street Journal and The New York Times in February claimed around 24 investors in the $1bn Abraaj Growth Markets Health Fund had hired investigators to find out what had happened to some of the money invested in the fund. Abraaj denies any wrongdoing.
The allegations have snowballed since then and the group is trying to reorganise its business, and sell its funds management unit along with its stakes in other companies to resolve liquidity issues. New York-based Cerberus Capital Management is among the potential buyers, according to reports.
Abraaj met key stakeholders and creditors on Monday to discuss the potential sale and debt restructuring and said it was pleased with the outcome. “Secured creditors are expected to imminently conclude a standstill which will provide Abraaj the ability to meet its obligations in an orderly fashion,” the group said in a statement at the time.
__________
Read more:
Abraaj expects to reach debt standstill deal with secured creditors 'imminently'
Abraaj meets shareholders and creditors to allay concerns
Abraaj's Naqvi relinquishes control of funds business in major organisational shakeup
Abraaj says KPMG review finds no evidence of fund misuse
__________
However, PIFSS’s liquidation request threatens the ongoing negotiations.
“Such a prospect would make any asset-sale negotiations much more difficult until the hearing is concluded,” said Mr Howladar. “No doubt the shareholders and (standstill) creditors will argue that a liquidation is not in their best interests.”
Cleary Gottlieb Steen & Hamilton, is acting on behalf of PIFSS. There is a seven working day period between the date on which a party files a claim, and when the claim is published, meaning PIFSS filed the petition around May 29, before the creditors meeting took place on Monday.
Abraaj said it is “continuing to work intensively and collaboratively with all of its stakeholders to resolve outstanding obligations”, and added that talks to sell the funds management business are at an advanced stage.
“Potential acquirers are engaging with key regional and international stakeholders and we are jointly working towards achieving a positive outcome,” the company said in Thursday's statement.
The interest of investors, creditors, and broader stakeholders is “paramount” as it explores options to maintain the stability and continuity of the firm.
“We are laser-focused on concluding the standstill agreement with our creditors, the vast majority of whom recognise and endorse the commercial rationale and collective financial benefit of such an approach, to ensure that maximum value is realised by each party,” the statement said.
Abraaj has started preparations to apply for provisional liquidation, in which a court appoints a liquidator on a provisional basis before hearing or ruling on a petition to wind up a company, according to a Reuters report.
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
The team
Photographer: Mateusz Stefanowski at Art Factory
Videographer: Jear Valasquez
Fashion director: Sarah Maisey
Make-up: Gulum Erzincan at Art Factory
Model: Randa at Art Factory Videographer’s assistant: Zanong Magat
Photographer’s assistant: Sophia Shlykova
With thanks to Jubail Mangrove Park, Jubail Island, Abu Dhabi
The%20Hunger%20Games%3A%20The%20Ballad%20of%20Songbirds%20%26%20Snakes
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%C2%A0Francis%20Lawrence%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%C2%A0%3C%2Fstrong%3ERachel%20Zegler%2C%20Peter%20Dinklage%2C%20Viola%20Davis%2C%20Tom%20Blyth%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E3%2F5%3C%2Fp%3E%0A
Match info
Wolves 0
Arsenal 2 (Saka 43', Lacazette 85')
Man of the match: Shkodran Mustafi (Arsenal)
Recycle Reuse Repurpose
New central waste facility on site at expo Dubai South area to handle estimated 173 tonne of waste generated daily by millions of visitors
Recyclables such as plastic, paper, glass will be collected from bins on the expo site and taken to the new expo Central Waste Facility on site
Organic waste will be processed at the new onsite Central Waste Facility, treated and converted into compost to be re-used to green the expo area
Of 173 tonnes of waste daily, an estimated 39 per cent will be recyclables, 48 per cent organic waste and 13 per cent general waste.
About 147 tonnes will be recycled and converted to new products at another existing facility in Ras Al Khor
Recycling at Ras Al Khor unit:
Plastic items to be converted to plastic bags and recycled
Paper pulp moulded products such as cup carriers, egg trays, seed pots, and food packaging trays
Glass waste into bowls, lights, candle holders, serving trays and coasters
Aim is for 85 per cent of waste from the site to be diverted from landfill
UAE currency: the story behind the money in your pockets
MATCH INFO
Champions League last 16, first leg
Tottenham v RB Leipzig, Wednesday, midnight (UAE)
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The years Ramadan fell in May
UAE currency: the story behind the money in your pockets
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
MEYDAN RESULTS
6.30pm Baniyas (PA) Group 2 Dh125,000 (Dirt) 1,400m
Winner ES Ajeeb, Sam Hitchcock (jockey), Ibrahim Aseel (trainer).
7.05pm Maiden (TB) Dh165,000 (D) 1,200m
Winner Galaxy Road, Antonio Fresu, Musabah Al Muhairi.
7.40pm Maiden (TB) Dh165,000 (D) 1,400m
Winner Al Modayar, Fernando Jara, Ali Rashid Al Raihe.
8.15pm Handicap (TB) Dh170,000 (D) 1,900m
Winner Gundogdu, Xavier Ziani, Salem bin Ghadayer.
8.50pm Rated Conditions (TB) Dh240,000 (D) 1,600m
Winner George Villiers, Tadhg O’Shea, Satish Seemar.
9.25pm Handicap (TB) Dh175,000 (D)1,200m
Winner Lady Parma, Connor Beasley, Satish Seemar
10pm Handicap (TB) Dh165,000 (D) 1,400m
Winner Zaajer, Fernando Jara, Ali Rashid Al Raihe
Killing of Qassem Suleimani
KILLING OF QASSEM SULEIMANI
McLaren GT specs
Engine: 4-litre twin-turbo V8
Transmission: seven-speed
Power: 620bhp
Torque: 630Nm
Price: Dh875,000
On sale: now
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
North Pole stats
Distance covered: 160km
Temperature: -40°C
Weight of equipment: 45kg
Altitude (metres above sea level): 0
Terrain: Ice rock
South Pole stats
Distance covered: 130km
Temperature: -50°C
Weight of equipment: 50kg
Altitude (metres above sea level): 3,300
Terrain: Flat ice
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
Dubai works towards better air quality by 2021
Dubai is on a mission to record good air quality for 90 per cent of the year – up from 86 per cent annually today – by 2021.
The municipality plans to have seven mobile air-monitoring stations by 2020 to capture more accurate data in hourly and daily trends of pollution.
These will be on the Palm Jumeirah, Al Qusais, Muhaisnah, Rashidiyah, Al Wasl, Al Quoz and Dubai Investment Park.
“It will allow real-time responding for emergency cases,” said Khaldoon Al Daraji, first environment safety officer at the municipality.
“We’re in a good position except for the cases that are out of our hands, such as sandstorms.
“Sandstorms are our main concern because the UAE is just a receiver.
“The hotspots are Iran, Saudi Arabia and southern Iraq, but we’re working hard with the region to reduce the cycle of sandstorm generation.”
Mr Al Daraji said monitoring as it stood covered 47 per cent of Dubai.
There are 12 fixed stations in the emirate, but Dubai also receives information from monitors belonging to other entities.
“There are 25 stations in total,” Mr Al Daraji said.
“We added new technology and equipment used for the first time for the detection of heavy metals.
“A hundred parameters can be detected but we want to expand it to make sure that the data captured can allow a baseline study in some areas to ensure they are well positioned.”
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Killing of Qassem Suleimani
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
Dengue%20fever%20symptoms
%3Cul%3E%0A%3Cli%3EHigh%20fever%3C%2Fli%3E%0A%3Cli%3EIntense%20pain%20behind%20your%20eyes%3C%2Fli%3E%0A%3Cli%3ESevere%20headache%3C%2Fli%3E%0A%3Cli%3EMuscle%20and%20joint%20pains%3C%2Fli%3E%0A%3Cli%3ENausea%3C%2Fli%3E%0A%3Cli%3EVomiting%3C%2Fli%3E%0A%3Cli%3ESwollen%20glands%3C%2Fli%3E%0A%3Cli%3ERash%3C%2Fli%3E%0A%3C%2Ful%3E%0A%3Cp%3EIf%20symptoms%20occur%2C%20they%20usually%20last%20for%20two-seven%20days%3C%2Fp%3E%0A
