Damas extends date for $108.9m payment by Abdullah Brothers

Jeweller extends date to April 30, 2011, says Cascade agreement yet to be signed
Damas extends date for $108.9m payment by Abdullah Brothers
The former CEO of Damas International, Tawhid Abdullah
By Joanne Bladd
Mon 04 Apr 2011 11:50 AM

Damas International, the largest gold jewellery retailer in the Middle East, said Monday it has extended the payment date for AED400m ($108.9m) owed by the Abdullah Brothers by a month.

The firm’s founders had until April 30, 2011 to repay the amount owed, the company said in a statement to Nasdaq Dubai.

The extension will allow time for the Cascade agreement, which provides the legal framework for the liquidation of the assets of the Abdullah Brothers Group, to be signed by all parties, the statement said.

“Not all parties have signed the Cascade agreement…[but the company believes] the Cascade agreement will be signed by all remaining parties in the near future,” the statement said.

The company said last week it had signed an agreement with all lenders to restructure around $817 in loans.

In December, Damas reported a six-month net profit of just over $1m, a major turnaround from a year of losses and controversy. 

The firm was reprimanded by DIFC’s regulator in March, which ordered the firm to dismiss the board and pay fines for failing to exercise proper governance. Three months after they were dismissed by regulators, Damas appointed the Abdullah brothers as senior advisers.

The firm has around 400 stores worldwide.

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