Abraaj is being restructured by liquidators in a bid to settle more than $1 billion of its debts through asset sales
Abraaj Group, the private equity firm that collapsed after defaulting on debt, will get a 70 percent stake in C&I Leasing Plc by converting a $10 million loan into equity in the Nigerian company.
“Abraaj knows that pulling out $10 million will be detrimental to the growth of the business, so rather than cash out, they decided to convert,” C&I CEO Andrew Otike-Odibi said by phone from Lagos.
Once done, C&I plans a rights issue or an initial public offering that may dilute Abraaj’s stake to about 30 percent, he said.
Abraaj, once one of the most high-profile private equity companies in the Middle East until its dramatic failure last year, is being restructured by liquidators in a bid to settle more than $1 billion of its debts through asset sales.
The firm’s Lagos office didn’t respond to an email seeking comment.
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