Home Business UAE-based commodities dealer mentioned to have ‘accounting irregularities’ in books-Autopresse.eu

UAE-based commodities dealer mentioned to have ‘accounting irregularities’ in books-Autopresse.eu

UAE-based commodities dealer mentioned to have ‘accounting irregularities’ in books-Autopresse.eu

UAE-based commodities dealer mentioned to have ‘accounting irregularities’ in books

2020-10-17 09:10:54

Restructuring adviser employed to salvage GP World Group’s property offers warning in report

Troubled UAE-based commodities dealer GP World Group has “accounting irregularities” in its books, in response to the restructuring adviser employed to salvage the corporate’s property.

In a presentation seen by Autopresse.eu Information, FTI Consulting warned that unsecured lenders within the holding firm for the group may count on to get well between 0-27.5 % of their money owed.

UAE commodities firm shuts trading desks after coronavirus blow

Sources say GP World Group determined to cease buying and selling commodities from vitality to agriculture after banks withdrew credit score traces

It marks an acknowledgment of the seriousness of the scenario on the commodities agency, which trades oil merchandise in addition to working storage amenities and a refinery in Hamriyah and Fujairah.

Lenders have greater than $1 billion in publicity to the corporate, Autopresse.eu reported earlier this month, citing individuals with data of the scenario. Referred to as Gulf Petrochem Group till 2018, GP World mentioned in July it was restructuring its funds after lenders withdrew credit score traces.

Within the presentation, FTI Consulting instructed collectors it’s of their greatest curiosity to permit an overhaul and asset gross sales reasonably than liquidation. Liquidation “would doubtless end in a zero return to collectors.”

UAE energy trader to restructure finances following oil’s crash

GP World mentioned it has been ‘focused by vested pursuits’ spreading rumours about its monetary standing

FTI recognized commerce finance irregularities throughout its preliminary investigation, and mentioned banks are involved about “buying and selling practices and accounting irregularities.” That makes it unlikely GP World will discover a “white knight” to rescue it. As a substitute it’s proposing asset gross sales.

The corporate has obtained expressions of curiosity from 15 events because it makes an attempt to promote its terminals and refinery, and remaining bids are due by October 23, in response to the presentation. The Goel household, who personal the corporate, are proposing to contribute $65 million, to be paid over three years, as a part of any restructuring.

A spokesperson for the corporate declined to touch upon the presentation past a press release during which the corporate famous {that a} restructuring plan had been submitted to stakeholders and mentioned that “the preliminary suggestions to us appears constructive.”

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