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Mon 28 Mar 2011 02:54 PM

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Damas inks debt restructuring deal with bank creditors

All 25 bank creditors signed agreement, representing 100 percent of jeweller’s bank debt

Damas inks debt restructuring deal with bank creditors
Damas International is the largest gold jewellery retailer in the Middle East

Damas International, the largest gold jewellery retailer in the Middle East, said on Monday it had signed an agreement with all 25 bank creditors representing 100 percent of its bank debts.

“Damas is in the process of satisfying the conditions precedent to the facility agreement and hopes to complete the process shortly,” it said in a statement to Nasdaq Dubai.

The company had sought to restructure around $817m of loans.

The firm is also attempting to recover AED400m (about $110m) from its founders, the Abdullah brothers.

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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