Dubai: Jeweller Damas International is nearing a standstill agreement with its creditors of up to Dh4 billion ($1.09 billion) on the group's debt, a person close to the talks said.
Damas in December posted a near $200 million first-half loss and has undergone a change of top management since the company accused its former head of involvement in $165 million of "unauthorised transactions." Former chief executive Tawhid Abdullah, who left in October, has denied any wrongdoing.
The person, who asked not to be identified said on Sunday: "We believe an agreement will be reached in due course, the conversations are going well." Damas is also considering selling some assets to raise capital, he added.
Core business
Damas' restructuring comes as Dubai World is in talks with its creditors to reach a standstill agreement on debt restructuring.
Damas is primarily involved in the business of trading in gold and gold jewellery, diamond jewellery, pearls, watches, silver and precious stones on a wholesale and retail basis.
Damas is dealing with nearly 20 banks, including international players such as France's BNP Paribas and Britain's Barclays, as well as local lenders, according to a financial statement released in December.
Damas has nearly completed working on the official standstill agreement, under which it would defer principal loan repayments until May 31 but still accrue interest.
