For many people, the imminent bankruptcy of Abraaj Group came as a shock.
Once known and applauded as the biggest private equity firm in emerging markets, Abraaj Group might be shutting down should its last-minute strategy to stop its liquidation fails to yield any tangible results.
After ignoring rumours that the company would file for liquidation, Abraaj finally announced that:
“Simon Conway of PwC Cayman Islands, Mo Farzadi of PwC Dubai and Michael Jervis of PwC UK were appointed as Joint Provisional Liquidators of Abraaj Holdings by order of the Grand Court of the Cayman Islands on 18 June 2018. The Joint Provisional Liquidators act as agents of Abraaj Holdings and without personal liability. For further information regarding the Provisional Liquidation of Abraaj Holdings, please contact the Joint Provisional Liquidators’ office at firstname.lastname@example.org
And that “Pursuant to an Order of the Grand Court of the Cayman Islands made on 18 June 2018, Stuart Sybersma and David Soden of Deloitte have been appointed as Joint Provisional Liquidators of Abraaj Investment Management Limited. For any enquiries regarding the Provisional Liquidation of Abraaj Investment Management Limited”.
There is more to this liquidation, particularly regarding its consequence to Nigerian companies where Abraaj holds sizeable equity stakes. From Computer Warehouse Group, C & I Leasing Plc, Mouka Foam and many other medium-sized companies, Abraaj would be forced to sell off many of its stakes in these companies to pay its creditors.