Damas signs standstill agreement with bank lenders

Published March 28th, 2010 - 09:29 GMT

Following a series of successful discussions, Damas International Limited (Damas), the leading retail jewellery company in the Middle East, announced today that it has signed a Standstill Agreement with a majority of its bank lenders.

A restructuring plan is currently being developed by the company, which will be implemented at the end of the standstill period.

“Damas is pleased to announce the signing of this Standstill Agreement with the majority of our bank lenders,” said a company spokesperson. “This is a significant, positive announcement, demonstrating the confidence of our bank lenders in the strength of the underlying business model of Damas, the leading retail jewellery company in the Middle East.

“This agreement is also noteworthy in that it not only validates Damas’s long-term business strategy and strong fundamentals, but also highlights belief in the new systems and structures being established within the company to ensure compliance with the highest standards of corporate governance.”

The company spokesperson added: “As we continue to move forward with the finalisation of our restructuring plan, Damas is grateful to all its creditors for their continuing support and confidence in the company’s ability to overcome the current challenges and to deliver sustained growth in our business.

“Following the company’s recent successful promotions over the festive period, including Valentine’s Day and Mother’s Day, and the recent opening of our newest Damas-branded retail outlet, at Mirdif City Centre, in Dubai, UAE, the company’s business prospects continue to be bright. We look forward to introducing further products, services and promotions that meet the needs of our customers here in the Middle East and across the world, while delivering optimum value to our stakeholders,” the company spokesperson concluded.

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