Damas International Limited has overcome adifficult scenario with the signing of the agreement for the restructuring of debt valued at about Dh3 billion, according to Ibrahim Belsaleh company chairman.
In an interview with Al Bayan Business, Belsaleh said that the company is going to turn the page of debt with the completion of the signing of the agreement for the liquidation of assets of the Abdullah brothers in Damas real estate.
He noted that access to debt owed by the brothers Abdullah which is Dh614 million is a very important issue as it will allow calculation of cash flows more clearly and accurately. It is important for brothers Abdullah to refund the amount within the fixed period so they avoid exposure to certain actions.
Belsaleh said the company now has a clear organisational structure and has strong financial position, transparent and capable of building on it in the future.
Belsaleh explained that the creditor banks reduced their conditions which are now reasonable.
He said the company has taken the necessary measures and procedures for comprehensive restructuring, so banks are confident that the company possesses a structure and administrative system to work efficiently and effectively in accordance with the required procedures.
He asserted that the creditor banks have reduced their interest rates, making it more convenient and fair for both sides.
He mentioned that creditors banks did not find any need to appoint a delegate to be represented at the Board of Directors of the company, and were comfortable about the company's keenness to provide information on a regular basis.
The difficult scanario
One year has passed after forming of the new Board of Directors of Damas. At the beginning, the company was facing a difficult scenario. "Our goal during this phase was focused to avoid chaos and degradation through proper control and adjustment".
He said the debt problem emerged as the biggest challenge that needed a high degree of professionalism and discretion. The number of creditors were about 25 banks, both local and other global.
“We succeeded in the comprehensive restructuring of debt through cooperation with the creditors. We didn’t ask for any help from consulting firms to manage the processes of negotiation with banks, but we relied on the Board of Directors which has huge experience in this area."
Belselah said the negotiation processes took about a year until agreement was reached recently.
He emphasised that the agreement will allow creditor banks to get full capital along with the benefits accrued.
He stressed that the completion of this agreement was not possible without the exercise of banks in a spirit of understanding and confidence in the company's ability to re-embark on the path of growth and prosperity.The firm has the elements of strength to achieve sustainable growth.
He added the company closed the fiscal year ended 31st March and achieved good results. Disclosure is possible only after being posted on Nasdaq Dubai.
“The last thing left is to reach agreement regarding liquidation of the assets of the brothers Abdullah Damas real estate for the benefit of creditors, including Damas Jewellery. Such an agreement is expected to be concluded soon."
He said that would involve the administrative status and recruitment of new cadres and re-engineering operations in full and the adoption of new technologies of information.
“We are creating a model of an innovative shift from the family business to a public joint stock company, and are able to continue and remain, which is a difficult task, especially in the jewelry business, which based on families in various parts of the world, including global brands.
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