Dubai: Zabeel in trouble
The recently-filed case is claiming £66 million from Zabeel – which once had stakes in Sony -- for allegedly failing to meet repayment obligations, reports the Reuters news agency.
According to the report, Zabeel owes some $1.6bn to local banks. Talks on restructuring the debt came to a standstill in January. One source close to the matter said: ‘It's about time. People can't let things linger like this; a decision regarding the debt and restructuring had to be made.’
The case represents the latest legal action taken against Dubai entities after three foreign banks, including Royal Bank of Scotland, filed proceedings against Dubai Group -- which is owned by Dubai's ruler, Sheikh Mohammed bin Rashid al-Maktoum -- last month.
State-owned Dubai Real Estate has taken over management of Zabeel and will lead new debt discussions, sources claim. Officials at the business are yet to comment.