UAE’s Al Jaber Group agrees to second restructuring of $1.5 billion

Abu Dhabi: Al Jaber Group, a family-owned business in Abu Dhabi, agreed with banks to restructure $1.5 billion (Dh5.5 billion) of debt for a second time, people with knowledge of the plan said.

The group is close to signing a deal with about 20 creditors to push out loan maturities to December 2026, said the people, asking not to be identified because the information is private.

In return, Al Jaber will seek to raise about Dh1.63 billion ($444 million) from asset sales by the end of 2020 and is in the process of hiring sale managers. Members of the Al Jaber family, as well as other shareholders, will also try to raise as much as Dh765 million by selling personal assets, according to the people.

Banks have also committed to extending a credit line of about Dh1.5 billion to Al Jaber to support project bids. The entire deal is expected to be completed by September after all the banks receive approvals, according to the people. A spokesman for the Al Jaber Group declined to comment.