Al Jaber calls for debt extension
Conglomerate looks to sell non-core assets as part of restructuring
Al Jaber Group is looking to extend its debt repayments to creditors by five years.
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Al Jaber Group, the Abu Dhabi based conglomerate, is looking to extend debt repayments to creditors by five years, and has proposed the sale of non-core assets as part of its multi-billion dollar restructuring, a Zawya Dow Jones news report has said.
According to three people familiar with the matter, lenders have been told that they won’t face a reduction in what they’re owed.
One of the UAE’s largest private employers, the Al Jaber Group is primarily active in construction, but also has interests in aviation and retail. Due to the financial crisis, the company was unable to pay its debts as liquidity died up.
In a meeting held last month, creditors were given an overview of debt restructuring proposals, according to sources that declined to be named, the newswire service said.
Al Jaber is being advised by Rothschild and has told creditors they will receive a more detailed term sheet in the coming months, after which creditors will have time to respond.
A source said that the company hoped to get the restructuring signed off by the end of the year, but it would likely be in early 2013.
