Al Jaber reaches deal with creditors on AED 5.8bn debt stack

Breaking News 27 September

Al Jaber reaches deal with creditors on AED 5.8bn debt stack

Al Jaber Group has reached a deal with its creditors who will accept a settlement offer from the construction company in relation to its AED 5.8bn (USD 1.6bn) debt stack, according to two sources close to the situation. 

The deal is "effectively done and signed," said one of the sources. 

Creditors have agreed to a 70% haircut on their debt, and a three-to-four-year asset disposal plan, added the same source. 

Debtwire reported in November last year that a proposal in relation to the Abu Dhabi firm's 2014 restructuring had secured the preliminary approval of three of its largest creditors who held 77% of the company's funded outstanding debt at the time.

The proposal cited the Common Terms Agreement of June 2014 entered into by Al Jaber and Abu Dhabi Commercial Bank (ADCB), among others.

Al Jaber proposed at the time a full and final AED 1.71bn settlement to creditors out of the AED 5.52bn outstanding under the 2014 finance documents. Click here for more details on the proposal.

ADCB, Fidera and First Abu Dhabi Bank make up the creditor committee. 

PwC and Clifford Chance acted company-side, while Allen & Overy advised the lenders.

Al Jaber could not be reached for comment.

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