Wednesday, Jul 20, 2011
DUBAI (Zawya Dow Jones)--Abu Dhabi-based Al Jaber Group, a privately-held civil and electro-mechanical contractor, is meeting creditors and advisers in the U.A.E.'s capital Wednesday to discuss a draft standstill agreement and the group's debt restructuring process, two people familiar with the situation said.
"A meeting is taking place today between Al Jaber group and its creditor banks," said one person attending the meeting.
"It's a positive and necessary step where information is being presented and discussed. No resolution is being sought," the person added.
The participants are reviewing the company's finances, discussing a draft standstill agreement and the next steps of the restructuring process, the person said.
It is the first time that all Al Jaber stakeholders meet to share information. Around 90 to 100 people, including bankers, company representatives and advisers are taking part in the meeting, which takes place in the U.A.E. capital, the person added.
Al Jaber Group, which was hit by a slowdown in the regional construction sector, in January said it had appointed a coordinating committee, or CoCom, of creditor banks to reschedule the group's debts. The company didn't say at the time how much debt it was seeking to restructure.
The committee is chaired by National Bank of Abu Dhabi and also includes Abu Dhabi Commercial Bank, HSBC, RBS and Union National Bank. The committee is advised by PwC and law firm Allen & Overy. Al Jaber is advised by Rothschild, KPMG and Norton Rose.
Al Jaber Group is among the latest, large companies in the region to have announced it was restructuring debt after running into financial difficulties in the aftermath of the global financial crisis. Earlier this year, government conglomerate Dubai World reached an agreement with its creditors on the restructuring of $25 billion in debt.
-By Nicolas Parasie, Dow Jones Newswires; +9714 446-1681; nicolas.parasie@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
20-07-11 0709GMT
