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Mon 14 Feb 2011 03:05 PM

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Dubai’s Damas inks deal representing 93% of bank debt

Troubled jewellery firm is in the process of restructuring around $817m of loans

Dubai’s Damas inks deal representing 93% of bank debt
(Getty Images)

Damas International, the largest gold jewellery retailer in the Middle East, said on Sunday it had signed an agreement with lenders representing 93 percent of the company’s bank debt.

The company, which made the announcement in a statement to Nasdaq Dubai, is in the process of restructuring 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. However, the brothers are still involved in the enterprise and, three months after they were dismissed by regulators, Damas appointed them as senior advisers.

The firm has around 400 stores worldwide.

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