- DUBAI: Jeweller Damas International said it had signed a repayment agreement with its founding Abdullah brothers and creditors that clears the way for selling certain assets of the founders.
On Sunday, the jeweler extended the payment date for AED600 million ($163.4 million) owed by the Abdullah brothers by another month to May 31.
“The Cascade Agreement provides the legal framework for an orderly liquidation of, and realization of cash proceeds from the sale of, the assets of the Abdullah Brothers Group,” Damas said in a statement.
“The agreement allows for the realization of assets at reasonable market values rather than at distressed sale value.”
Damas said earlier this year that it reached a final agreement with all its lenders and completed the restructuring of its $872 million debt.
An inquiry last year showed that the Abdullah brothers owed the company a total of AED614 million ($167.2 million), which included AED256 million worth of gold that the three brothers had withdrawn from the company.
Damas is primarily involved in the business of trading in gold and gold jewellery, diamond jewellery, pearls, watches, silver and precious stones on a wholesale and retail basis.