Executive Changes at Damas Amid Restructuring
February 10, 10
 Former Damas CEO Tawhid Abdullah (above) spent some $165 million and brought the company to the brink of collapse |
Sanjay Manchanda, a partner at PricewaterhouseCoopers which is advising Damas on its restructuring process, was appointed chief restructuring adviser, the company said in a statement to Nasdaq Dubai today. Dinish Dhanak was named interim acting chief financial officer and Namir El Aridi was named general counsel and company secretary.
Last October, Damas’ Chief Executive Officer and Managing Director Tawhid Abdullah resigned after the company reported the unauthorized transactions. Abdullah is a member of the company’s founding family. The transactions brought the company to the brink of collapse.
The company never disclosed details about the unauthorized transactions, however market sources close to the company said they included large real estate investments in Dubai, among other outlays.
While Damas reported a gross income of Dh 320 million ($39.21 million) in the six months ending September, it posted a loss of Dh 714.9 million ($87 million) due to “doubtful” loans.
“We welcome these gentlemen and the expertise they bring to the senior management team of Damas,” Tawfique Abdullah, chairman of the company and Tawhid’s brother, said in a statement published on the NASDAQ Dubai website. “I am pleased to report that the company continues to trade well and is generating cash from its operations.”
Tawhid and Tawfique Abdullah, together with a third brother, Tamjid, have signed a settlement agreement to repay the $165 million, putting up 350 million shares as security for the owed moneys.
The company operates about 450 stores across the Middle East, selling jewelry and watches.
In 2008, Damas raised $270.6 million through an initial public offering, majority control of the company remains with the Abdulla brothers.