By Joanne Bladd
Founders of Dubai-based jeweller now have till May 31 to begin debt repayment, says company
Damas International, the largest gold jewellery retailer in the Middle East, said Sunday it would extend the payment date for AED600m ($163.4m) owed by its founders, the Abdullah Brothers, by another month.
The brothers now have until May 31, 2011, the company said in a statement to Nasdaq Dubai.
The cascade agreement, which provides the legal framework for the liquidation of the assets of the Abdullah Brothers Group, to be signed by all but one bank creditor so far, Damas said.
“The company believes that this final bank creditor is in the process of obtaining internal approval and will sign the cascade agreement shortly,” Damas said in the statement.
Last month, the Dubai-based jeweller extended the payment date to April 30 to give more time for parties involved in the agreement to sign up.
An inquiry last year showed that the Abdullah brothers owed the company a total of AED614m ($167.2m) that included AED256m worth of gold that the three brothers had withdrawn from the company.
Damas, which operates around 400 stores worldwide, said in April it had signed an agreement with all lenders to restructure around $817 in loans.
In December, the jeweller reported a six-month net profit of just over $1m, a major turnaround from a year of losses and controversy.
Damas last week said a subsidiary had acquired a controlling stake in its joint venture operation, Damas Saudi Arabia Company, for an undisclosed sum.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.