Abu Dhabi – Mubasher: Cayman Islands court has approved a request submitted by Abraaj Group for a provisional liquidation of its business, which allows for a court-supervised restructuring and the protection of stakeholders’ rights, the UAE-based group said on Tuesday.

On Monday, the court appointed executives from PwC as joint provisional liquidators of Abraaj Holdings and executives from Deloitte as joint provisional liquidators at Abraaj Asset Management, the private equity firm revealed.

“This order validates the position consistently maintained by Abraaj that an orderly restructuring can ensure the outcomes we seek for the company and its creditors,” Abraaj’s founder Arif Naqvi commented.

The restructuring of Abraaj Holdings will have a limited impact on the company’s day-to-day operations related to the management of funds and their portfolio companies, Abraaj stated.

“The order by the court enables the company to swiftly move into a stable phase of operations whereby restructuring plans and asset disposals can be executed upon in a protected and controlled environment,” a PwC partner and a joint provisional liquidator Michael Jervis said.

Abraaj has been facing a group of troubled due to money misusage allegations.

Earlier in June, the group was accused of mishandling a $1 billion healthcare fund and audits discovered that the company commingled investor funds with its own money in the healthcare fund.

Air Arabia unveiled measures aimed at ensuring the safety of its investments at Abraaj Group after the latter filed for a restructuring.