ABU DHABI Oct 9 Abu Dhabi Commercial Bank
(ADCB) has settled a $107.13-million legal claim it
filed against indebted Zabeel Investments, which is owned by the
crown price of Dubai, two sources said.
ADCB sued last month saying Zabeel, which has hospitality,
property and private equity assets, had failed to meet repayment
obligations. The case was filed in the Dubai International
Financial Centre's (DIFC) court.
"They settled the full amount that they filed for at the
DIFC," said one source familiar with the matter who spoke on
condition of anonymity.
Zabeel, owned by Crown Prince Hamdan bin Mohammed al-Maktoum
and which once had stakes in Sony Corp and planemaker
EADS, owes approximately 6 billion dirhams to mostly
local banks. Talks on restructuring the debt ground to a halt in
A Dubai government official confirmed last week that
state-owned Dubai Real Estate Corp. (DREC) had taken over the
management of Zabeel and would lead debt talks.
A DREC spokeswoman declined to comment. ADCB officials were
not immediately available for comment.
Last week, a local newspaper reported Zabeel had reached a
$956-million debt deal with lenders, citing an unnamed senior
ADCB's move marked the second time in a month a creditor
resorted to the courts to recover debt from a company owned by
the emirates top royals. Earlier in September, three of Dubai
Group's lenders began legal proceedings against the investment
firm, part of the ruler of Dubai's personal business empire.
(Reporting by Raissa Kasolowsky, David French and Praveen
Menon; Writing by Amran Abocar)