Al Jaber Group, one of Abu Dhabi's most prominent family conglomerates, is seeking a new chief executive amid a major financial restructuring with its lenders.
A consortium of banks was told in December that the group was set to replace its founder's son, Mohammed Al Jaber. Sources say he is likely to remain at the company in another role. The company declined to comment. The move to replace Mr Al Jaber comes three months after a new finance director, Richard Holland, was appointed.
Mr Al Jaber's father, Obaid Al Jaber, founded the company in 1970 with a focus on the construction sector. Today, the group says it has more than 30 companies dealing in construction, logistics, marine works and industrial processes. It employs 50,000 people and has assets of more Dh18 billion (US$3.7bn).
Sources, who did not want to be named, said an agreement on the group's debt standstill was expected to be completed within weeks. Al Jaber Group began talks with creditors at the end of 2010.
The draft standstill agreement, which is required for a company to delay payments on its debts, would buy Al Jaber Group time to rebuild its business, the sources said.
The value of its assets fell during the global financial crisis, which hit the property and construction sectors hard. The group then found it difficult to service repayments of its debt to banks.
Al Jaber Group derived much of its business from contracts with the Government and government-related firms to build infrastructure.
The standstill is the first step in restructuring and renegotiating terms on original loan agreements between the group and its lenders.
The group said last April that it had formed a coordinating committee, chaired by National Bank of Abu Dhabi and including HSBC, Abu Dhabi Commercial Bank, Royal Bank of Scotland and Union National Bank. Since then, the company is believed to have sold assets to help to reduce its debt.
The group had Dh1.39bn of loans due last year. It has Dh1.46bn due next year and Dh154 million in 2014, according to Bloomberg data. The total debtunder negotiation has not been disclosed.
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