Dubai jeweller Damas says founders owe $167m

Jeweller ordered to dismiss its board and pay penalties after enquiry found irregularities
Dubai jeweller Damas says founders owe $167m
HEAVY LOSS: The amount includes $69.6 million worth of gold and $97.4 million in cash
By Reuters
Fri 29 Oct 2010 10:53 AM

Dubai based jeweller Damas International said it agreed with its founders, the Abdullah brothers, that they owe the company a total of $167.2 million in cash and gold.

The amount includes $69.6 million worth of gold that the three brothers had withdrawn from the company, the company said in a statement on Nasdaq Dubai's website.

In the statement, Damas said: "The price of gold has been fixed after evaluation of several factors including the price of gold prevailing at the time of withdrawal and certain benchmark transactions that have taken place in the records of Damas thereafter."

In march, Dubai's regulator said the three, whom it named as Tawhid, Tawfique and Tamjid Abdullah, owed the company cash plus the value of 1.94 tonnes of gold.

It also ordered the jeweller to dismiss its board and pay penalties after an enquiry found irregularities.

In addition to the gold, the Abdullah brothers owe Damas $97.4 million in cash, according to Thursday's statement.

Both parties have also agreed to extend payment date for the amount of $108.9 million to Damas to be extended to January 31, 2011 from October 31, 2010.

 

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