Conglomerate awaiting final approval from other lenders as talks near a conclusion after more than two years.
Al Jaber Group, the Abu Dhabi conglomerate, has agreed on terms to restructure nearly $4.5bn in debt with its main creditors, it was revealed on Tuesday, with final approval from other lenders in the pipeline.
The announcement is expected to bring to a conclusion talks that have dragged on for more than two years, sources told the Gulf Times newspaper. The family owned group, which operates in the construction, aviation and retail sectors, had set up a five bank creditor committee in 2011 to negotiate a restructuring after it struggled to service its debt on maturity.
“The committee met the company last week and they’ve agreed to the terms of the restructuring with loan repayments spread over five years and without a haircut,” a source familiar with the discussions, told Reuters.
The term sheet is in circulation among the remaining 30 lenders for final approval, the source added.
“It is not quite a done deal yet but it is an important step in the right direction,” said a second source, declining to give additional details.
Al Jaber officials declined to comment.