The Grand Court of the Cayman Islands has appointed Simon Conway of PwC Corporate Finance and Recovery (Cayman) Ltd, along with Michael Jervis and Mohammed Farzadi of PricewaterhouseCoopers as joint provisional liquidators of Abraaj Holdings. The Grand Court also approved the appointment of David Soden and Stuart Sybersma of Deloitte as JPLs of the fund management business.
ABRAAJ SUCCEEDS IN APPLICATION FOR COURTSUPERVISED ORDERLY RESTRUCTURING AND APPOINTMENT OF JOINT PROVISIONAL LIQUIDATORS
- Grand Court of the Cayman Islands (“the “Court”) appoints representatives of PricewaterhouseCoopers as Joint Provisional Liquidators of Abraaj Holdings (“AH”)
- Court appoints representatives of Deloitte as Joint Provisional Liquidators of Abraaj Investment Management Limited (“AIML”)
DUBAI, UNITED ARAB EMIRATES and GRAND CAYMAN, June 19th, 2018: Abraaj Holdings Limited (“the Company”) today announced that the Court, in session on Monday 18th June 2018, made an order (“the Order”) appointing Simon Conway of PwC Corporate Finance and Recovery (Cayman) Limited and Michael Jervis and Mohammed Farzadi of PricewaterhouseCoopers, as joint provisional liquidators (“JPLs”) of Abraaj Holdings. Subject to the final sealed order of the Cayman Court, this ensures that the rights of all stakeholders can be protected while the Company and the JPLs promote a consensual restructuring of the Company’s obligations.
In parallel, the Court also heard an application by Abraaj Investment Management Limited (“AIML”) to appoint David Soden and Stuart Sybersma of Deloitte as JPLs of the fund management business. This application was also approved by the Court. The decisions made by the Court now enable AH and AIML to independently pursue court-supervised restructuring plans in an orderly fashion and for the benefit of their respective creditors. The courtsupervised restructuring of AH will have minimum impact on the day-to-day operations of the management of the Funds and their portfolio companies.
Pursuant to the Order, the JPLs for Abraaj Holdings are authorised to take all necessary steps with a view to developing and proposing, in consultation with the Company and its advisors, a restructuring of the Company’s obligations. The Order grants extensive powers to the JPLs for the protection and management of the Company’s assets, including maintaining oversight of board and management activities to maximise the returns to the stakeholders of the Company. The Company’s secured creditors have provided their full support for the JPLs to work alongside the Company to formulate and implement a restructuring of the Company’s liabilities which is in the best interest of all the creditors.
Michael Jervis, Partner at PwC and one of the Joint Provisional Liquidators appointed in respect of Abraaj Holdings, said of the appointment, “Our role as Joint Provisional Liquidators is to manage the restructuring of Abraaj Holdings in an orderly fashion, safeguard the assets of the Company, and ensure that the interests of creditors, employees and broader stakeholders are fully served. The Order by the Court enables the Company to swiftly move into a stable phase of operations whereby restructuring plans and asset disposals can be executed upon in a protected and controlled environment. Given our longstanding experience in global restructuring for financial and corporate institutions, PwC is extremely well placed to deliver a satisfactory outcome for the Company’s constituents and is commencing on this process with immediate effect”.
Arif Naqvi, Founder, The Abraaj Group added, “We are pleased with this outcome and grateful to the Court for its careful consideration of the issues and positive judgment. This Order validates the position consistently maintained by Abraaj that an orderly restructuring, under the guidance of a highly experienced team of Joint Provisional Liquidators, can ensure the outcomes we seek for the Company and its creditors. We are wholly committed to supporting the JPLs through this process and ensuring stability and value maximization for all parties”. ENDS. For Abraaj Hol