Dubai Group COO Aljassim resigns
Dubai, May 9, 2011
The chief operating officer of Dubai Group, part of a conglomerate owned by Dubai's ruler which is restructuring $10 billion of debt, has left the company, a source familiar with the matter said on Monday.
Abdulrazaq Aljassim had been involved in talks with bank lenders who are owed $6 billion by the company, the financial services arm of Dubai Holding.
The remaining $4 billion relates to other debt, such as direct shareholder loans to the firm. Interest payments have been suspended pending an agreement.
"Abdulrazaq Aljassim has been asked to leave," the source said, speaking on condition of anonymity. A spokeswoman for Dubai Group confirmed that Aljassim had left the company when contacted by Reuters.
"We can confirm that Abdulrazaq Aljassim has left Dubai Group to pursue other interests. Fadel Al Ali will be acting CEO for the company," the spokeswoman said. "He is a natural interim choice given that he has previously served as acting CEO and serves on a number of their portfolio companies." Ali is also executive chairman of Dubai Holding Commercial Operations Group.
Last month, sources told Reuters the debt talks were making slow progress and an agreement could be several months away.
"The banks are coming down hard," the source said. Dubai Group, which focuses on banking, insurance and investments, has stakes in Dubai-based investment bank Shuaa Capital, Greek group Marfin Investment Group and Australian company Citigold Corp. - Reuters