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By
Reuters
Published
Mar 24, 2010
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Damas eyes $872 million debt deal in 3 weeks

By
Reuters
Published
Mar 24, 2010

DUBAI, March 24 (Reuters) - Jeweller Damas International DAMAS.DI may reach a standstill agreement with its creditors within three weeks for 3.2 billion dirhams ($871.5 million) worth of debt, local daily The National reported on Wednesday 24 March.


Photo: www.damasjewel.com

Dubai's regulator earlier in March ordered the jeweller to dismiss its board and pay penalties after an enquiry found irregularities involving cash and gold.

Damas replaced its chief executive and managing director last year after alleging he made unauthorised transactions worth about $165 million. He denied any wrongdoing.

A standstill agreement has been distributed to around 20 banks that are owed money by Damas, the paper (www.thenational.ae) reported, citing anonymous sources.

Damas wasn't immediately available to comment.

(Reporting by Nicolas Parasie; editing by Thomas Atkins)

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