Abdullahs to repay $165m Damas 'transactions'

Dubai, December 27, 2009

Dubai jeweller Damas International said that two executives and the former head of the company had registered 350 million shares to repay nearly $165 million in 'unauthorised transactions.'

The three Abdullah brothers made the pledge as part of a settlement with Damas.

The discovery of the unspecified transactions led to the departure of the firm's chief executive officer, Tawhid Abdullah.

'The share pledge has been granted by the Abdullah brothers in favour of the company pursuant to the settlement agreement between the parties as security for the monies owing to the company under that agreement,' Damas said in a statement on Nasdaq Dubai.

No further details were immediately available. Earlier this month, Damas posted a steep first half loss and pinned the loss partly on provisions for inventory and receivables exposures.-Reuters

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