Al Jaber restructures $4.5bn in debt
Abu Dhabi group agrees on terms, two years on from the start of talks
Abu Dhabi conglomerate Al Jaber Group has agreed on terms to restructure nearly $4.5bn in debt with its main creditors, Reuters has reported.
Al Jaber Group, which has businesses in the construction, heavy lifting and steel fabrication sectors, first began talks with lenders to restructure its debt in 2010, but negotiations dragged on in the climate of high UAE risk and the low level of private-sector lending in the market.
In 2011 Al Jaber set up a five-bank creditor committee, which then met the company last week and agreed to spread loan repayments on its debt over five years, according to one Reuters source.
"It is not quite a done deal yet but it is an important step in the right direction," said a second source, noting that the term sheet is in circulation among the approximately 30 lenders for final approval.
Al Jaber itself has not given a figure for its debt, but the restructuring will enable Al Jaber to start reopening lines of credit and pitch for new contracts.
In October, Al Jaber & Partners in Qatar won the group’s most recent construction contract award from Lusail Real Estate Development for the highways and associated utility networks in Lusail City.