Abraaj files for provisional liquidation in Cayman Islands
Abraaj has filed for provisional liquidation in the Cayman Islands, seeking protection from the courts to promote a restructuring of its debt obligations.
The embattled private-equity company is seeking to appoint two executives from PwC as joint provisional liquidators, “imposing a moratorium on the enforcement of unsecured claims against the company”.
The Cayman Islands, where Abraaj entities are incorporated, have already received two separate petitions from unsecured creditors, calling to wind up Abraaj’s asset management arm and its holding company for non-payment of debts.
“This is a defining moment for everyone associated with Abraaj,” said Sean Cleary, chairman of the Abraaj Holdings’ board. “Under the auspices of the court, the situation has now been stabilised, and we can move forward to meet the firm’s commitments and restore confidence in the platform.”
Abraaj said the petition came with the support of its secured creditors, which want the provisional liquidators to work with the firm to implement a restructuring “in the best interests of all the company’s creditors.” The Dubai-based firm has been hit by a crisis of confidence since investors complained that it had mishandled their money in its $1bn healthcare fund.
A forensic review of the healthcare fund and Abraaj’s fourth buyout fund by Deloitte found commingling of investor’s money with Abraaj’s money. The audit shows that Abraaj still owes $95m to its fourth buyout fund. Source : Financial Times