Damas Signs Debt Standstill with Majority of Lenders

Damas announced today on NasdaqDubai that it had signed a standstill agreement with a majority of its lenders and was currently developing a restructuring plan which would be implemented at the end of the standstill period.  The length of the standstill period is not mentioned in the announcement.

Then taking a leaf from the Dr. Esam Janahi playbook, Damas then goes on to assert how this demonstrates "the confidence of the Company’s bank lenders in the strength of the underlying business model of Damas, the leading retail jewellery company in the Middle East".

Or then again it may just demonstrate the Company's bank lenders' experience in the backward local court system whose lightning quick procedures require an inordinate amount of time and result in abysmally low recovery rates.

And, yes, if you're wondering, a standstill agreement is only effective when 100% of the creditors have signed it as the TID experience has demonstrated.