Dubai: Damas International Limited said it has received all the banks' backing to the debt restructuring deal.
In total, all 25 banks, representing 100 per cent of the company's bank debts, have signed the facility agreement.
"Damas is in the process of satisfying the conditions precedent to the facility agreement and hopes to complete the process shortly," a company statement said.
The announcement follows the recent declaration of Damas' positive financial results for the six months ending September 30, 2010, which demonstrated the strength of the company's core operations and signalled its clear growth trajectory.
Ebrahim Belselah, Chairman of Damas' Board, said, "This is a significant milestone for Damas which reinforces the confidence of our bank lenders in the strength of the underlying business model of Damas, the leading retail jewellery company in the Middle East.
"Damas is now working towards the implementation of an operational restructuring that will support the growth of this 100-year-old business as we enter a new phase in our corporate history."
"Under the guidance of the new Board of Directors and senior management, we have put in place robust internal controls to ensure compliance with effective corporate governance," he said.
"On behalf of the Steering Committee, I would like to express our satisfaction with the signing of the facility agreement, which we believe reflects the best interests of all parties," said Vikram Reddy, Chairman of the Steering Committee of the company's bank lenders.
