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Damas, lender group ink facility deal; cascade negotiations continue
By Caroline Salls
Pittsburgh, Jan. 31 - Damas International Ltd. has reached an agreement with a steering committee of bank lenders on the form of a facility agreement related to the restructuring of the company and its loans, according to a company news release.
The lenders are expected to sign the agreement in February.
In order to give the company and the steering committee enough time to obtain final approval of the facility agreement, the committee has agreed in principle to extend a banking facility standstill agreement to March 31.
Damas said it is still in the final stages of negotiations related to a cascade agreement with Tawhid Abdullah, Tamjid Abdullah and Tawfique Abdullah, as well as Damas Real Estate LLC and Damas Investments Ltd., which are owned by the Abdullah brothers.
The Abdullah Brothers Group's bank creditors and Damas' lenders are also part of the cascade agreement negotiations.
According to the release, the cascade agreement will provide the legal framework for an orderly liquidation and realization of cash proceeds from the sale of the assets of the Abdullah Brothers Group.
Damas said this is designed to maximize recoveries for the company and other Abdullah Brothers Group creditors by allowing the assets to be sold with the cooperation of the group at market value over a period of time.
As previously reported, Damas announced in October that it agreed to extend the payment date for AED 400 million owed by the Abdullah brothers to Jan. 31 from Oct. 31.
Although the cascade agreement is expected to be finalized and signed soon, the company said it would not be signed by Jan. 31.
As a result, the Abdullah brothers' payment date has been further extended to March 31. If the cascade agreement is not signed by that date, the AED 400 million will be payable immediately.
Damas is a Dubai, United Arab Emirates-based jewelry company.
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