An Abu Dhabi bank has filed a legal claim against Dubai's Zabeel Investments, according to court papers seen by Reuters, the second time in a month a creditor has resorted to the courts to recover debt from a company owned by the emirates top royals.
Abu Dhabi Commercial Bank (ADCB) filed the case on September 19, claiming $107.13 million from Zabeel, owned by the crown prince of Dubai, saying it failed to meet repayment obligations. "It's about time. People can't let things linger like this, a decision regarding the debt and restructuring had to be made," said a source familiar with the matter. Zabeel, which has hospitality, property and private equity assets, owes approximately 6 billion dirhams ($1.6 billion) to mostly local banks. Talks on restructuring the debt ground to a halt in January. The Gulf emirate was hard hit by a 2009 debt crisis triggered by conglomerate Dubai World's request to delay repaying $26 billion in debt.
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