Dubai – Mubasher: Investors in the embattled Dubai-based private equity company Abraaj Group have said that firm owed them around $300 million.
The investors’ council threatened to resort to court if it failed to reach an agreement with Abraaj's court-appointed liquidators, namely Deloitte and PricewaterhouseCoopers (PwC).
“Since Deloitte and PwC were appointed on 18 June, they have made insufficient progress to stem losses tied to mismanagement and apparent fraudulent activity by Abraaj and the general partner,” Bloomberg reported, citing the investors’ council as saying.
The process of selling Abraaj takes so much time and moves in a sluggish pace despite many offers being made by a group of stakeholders, including Cerberus Capital Management, Colony Capital Crescent Capital, and Agility Capital.
Abraaj Group has been facing a backlash of money misusage allegations at its $1 billion healthcare fund.
Several companies in the region, particularly those listed in the UAE, have disclosed their exposure to Abraaj as per a circular issued by the Securities and Commodities Authority (SCA). Such companies included Air Arabia’s AED 1.2 billion exposure, Al Qudra Investments, and the Commercial Bank of Dubai (CBD).