Dubai – Mubasher: York Capital Management has presented an offer to acquire Abraaj Group’s asset management business in a consideration of $45 million.

The New York-based hedge fund is reportedly planning to pay $20 million of the offered amount in severance payments for the UAE company staff, informed sources told Bloomberg News.

The decision of accepting such a deal is in the hands of the liquidator of the ailing private equity firm, which is currently under a court-supervised liquidation.

Abraaj Group declined to comment on the matter, Bloomberg said.

A group of parties have submitted their bids to buy the Emirati private equity firm including a unit of Abu Dhabi Financial Group and Colony Capital.

Abraaj, once one of the developing world’s influential investors, has been facing allegations of money misuse in its $1 billion healthcare fund. In June, the Dubai-based investment firm filed for bankruptcy. It is reportedly undergoing a mega-restructuring plan.

A host of companies, particularly those listed in the UAE, have disclosed their exposure to Abraaj as per a circular issued by the Securities and Commodities Authority (SCA). Such companies included Air Arabia’s AED 1.2 billion exposure, Al Qudra Investments, and Commercial Bank of Dubai (CBD).

Analysts previously told Mubasher that companies’ disclosures of the level of their exposure to Abraaj would boost investor confidence in the markets.