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Abdullah Brothers' Damas Settlement Delayed

May 10, 2010 5:21 AM   By Avi Krawitz
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RAPAPORT... Damas International reported to Nasdaq Dubai that it is taking longer than expected to recover unauthorized funds withdrawn by the Abdullah brothers, its former employees. The Dubai-based jewelry retailer said the delay in payments does not constitute a default on its agreement with the brothers, but added that the $55 million originally due on April 30 will be carried forward.

“Active efforts are underway by the company and the Abdulla brothers to repay the amounts either in cash or by transfer of assets,” Damas noted in a statement.

In 2009, Tawhid Abdulla was forced to resign from his position as Damas' chief executive officer (CEO) for conducting “unauthorized transactions” valued at approximately $165 million. A repayment agreement was reached between the parties in November.

Damas explained that due to the proximity involved in transferring or selling the assets declared to the company, the recoveries are taking longer than outlined in the original timeline.

“The company is constantly engaged with the Abdulla brothers to ensure expeditious realization from the sale of assets to settle their drawings,” Damas added.

LH
Tags: Avi Krawitz, Abdullah Brothers, Avi Krawitz, Damas, Dubai, IGI, Jewelry
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