Abraaj Holdings liquidation (Dubai and Cayman Islands) (18 June)

Two unsecured creditors recently petitioned the Cayman courts calling for Abraaj, a Dubai based private equity firm, to be wound up and on Monday 18 June 2018, a Cayman Islands court order appointed PwC as provisional liquidator of Abraaj Holdings and Deloitte as provisional liquidator of Abraaj Investment Management Limited (Aiml).  The firm manages over $13 billion in assets. It has been reported that Auctus fund have complained that the proposed appointment of PwC and Deloitte lack sufficient independence.

The liquidation is designed to protect Abraaj from creditor action against defaults. Abraaj’s main secured creditors have agreed in principle to a debt standstill and have backed the company’s plan to restructure its $1bn in debts via asset sales. Four investors (including the Bill and Melinda Gates Foundation and the IFC) have over the last few months been in dispute over the use of $1 billion within an Abraaj health care fund. It is reported that Cerberus Capital Management has made an offer to buy Aiml.

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