Damas again extends standstill with lenders

Damas International, the Gulf region's largest jewelry retailer, said on Sunday it had extended a standstill agreement it has in place with the majority of its bank lenders until November 30. as it works to restructure about $872 million in debt.

"Due to the holiday periods it has been necessary to extend the standstill agreed with the steering committee of its bank lenders to 30 November 2010 and DIL [Damas] announces that the steering committee has, in principle, approved such extension," the company said in a statement posted on the Nasdaq Dubai website.

The latest move comes after Damas in July extended the standstill pact until Septmber 30.

In March, Tawhid, Tawfiq and Tamjid Abdullah, the founders of Damas, were fined and banned from directorships with any company in the Dubai International Financial Centre after the emirate's financial markets watchdog found they had committed a series of "unauthorized transactions."

Dubai's Financial Services Authority fined Damas, and the brothers, a total of $3.72 million and ordered them to repay $99.4 million plus the value of approximately 1.9 million grams of gold after it found they had withdrawn Damas funds for their own personal use without disclosing it to the board.