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Wed 29 Jun 2011 07:36 PM

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Dubai Aerospace Enterprise Capital CEO to step down

Departure comes after it was revealed the company is seeking an extension on $800m loan

Dubai Aerospace Enterprise Capital CEO to step down
Dubai Aerospace Enterprise (DAE) Ltd has announced the departure of the CEO from its capital division, Robert Genise. (Photo for illustrative purposes only)

Dubai Aerospace Enterprise (DAE) Ltd has announced the departure of the CEO from its capital division, Robert Genise, as it was revealed the company is seeking an extension on an $800m loan.

“We thank him for his many contributions and wish him well in his endeavours,” said DAE managing director Khalifa H AlDaboos.

DAE said Genise had left the company to pursue an entrepreneurial venture. AlDaboos added Genise’s departure was being seen as an opportunity to consolidate management at the Dubai-based aircraft leasing firm.

DAE, which cancelled orders for Airbus and Boeing Co planes, is seeking an extension on an $800m loan that matures in July, a person familiar with the matter said this week.

The government-owned aviation services and leasing company is asking five banks to extend the loan due July 23 by three to four years, the person said, declining to be identified because the matter is private.

The lenders are in turn asking DAE to make a down payment on the loan, the person said. Citigroup, Deutsche Bank, Emirates NBD, Lloyds Banking Group and Noor Islamic Bank arranged the loan in January 2009. A spokesperson for DAE couldn’t be reached for comment.

DAE, which has 47 aircraft on its books, entered the leasing market during the peak of an air-travel boom, and has since been hit by a slump in demand.

The company, set up in 2006 with the aim of becoming one of the world’s biggest airplane lessors, dropped orders in March for 42 planes from Airbus and in February cancelled an order for 32 Boeing aircraft.

The departure of the DAE boss is the third high profile exit by a major Dubai executive in a matter of weeks and follows in the footsteps of the CEOs of developer Nakheel and the hotel operator Emaar Hospitality

On Monday, Emaar Hospitality Group, the wholly owned subsidiary of Dubai-based real estate developer Emaar Properties, said its CEO Marc Dardenne is leaving the company, but gave no further details of his departure.

In early June, Dubai developer Nakheel announced its CEO Chris O’Donnell was stepping down “after completing his contract terms”. It was subsequently revealed O’Donnell was suing his former employer for a seven figure sum for breach of contract.

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