Fadel al Ali named as acting CEO for state-backed firm restructuring $10bn in debt
The chief operating officer of Dubai Group, part of a
conglomerate owned by Dubai's ruler which is restructuring $10bn of debt, has
left the company, a source familiar with the matter said on Monday.
Abdulrazaq Aljassim had been involved in talks with bank
lenders who are owed $6bn by the company, the financial services arm of Dubai
The remaining $4bn relates to other debt, such as direct
shareholder loans to the firm. Interest payments have been suspended pending an
"Abdulrazaq Aljassim has been asked to leave," the
source said, speaking on condition of anonymity.
A spokeswoman for Dubai Group confirmed that Aljassim had
left the company when contacted by Reuters.
"We can confirm that Abdulrazaq Aljassim has left Dubai
Group to pursue other interests. Fadel al Ali will be acting CEO for the
company," the spokeswoman said. "He is a natural interim choice given
that he has previously served as acting CEO and serves on a number of their
Ali is also executive chairman of Dubai Holding Commercial
Last month, sources said the debt talks were making slow
progress and an agreement could be several months away.
"The banks are coming down hard," the source said
Dubai Group, which focuses on banking, insurance and
investments, has stakes in Dubai-based investment bank Shuaa Capital, Greek
group Marfin Investment Group and Australian company Citigold Corp.