Abu Dhabi's Al Jaber proposes 5-yr debt extension-sources

By Praveen Menon

DUBAI, Oct 4 (Reuters) - Abu Dhabi family-owned conglomerateAl Jaber Group, in talks to restructure at least $1 billion indebt, has proposed to extend repayment by five years, twosources familiar with the company's plans said on Thursday.

Al Jaber, which has operations in construction, aviation andretail, set up a creditor committee last year to negotiate therestructuring. It has not yet given a figure for its debt pile,estimated by some bankers at more than $1 billion.

Al Jaber is one of the most prominent private sector firmsin Abu Dhabi, where the acknowledgment of financial difficultieshas been minimal in contrast to neighbouring Dubai, under thespotlight for its debt woes since late 2009.

The conglomerate has embarked on a reshuffle of topmanagement, including a new chief executive, as part of effortsto get it back on track.

Abu Dhabi, the cash-rich emirate which sits on most of UAE'soil wealth, is itself conducting a strategic review of itsstate-linked entities as part of measures to ensure betterinvestment discipline and governance in these firms.

The timeframe for repayment was proposed at a meeting heldwith the company's creditor banks a couple of weeks ago. Thecompany proposed asset sales as one means to help repay lendersbut no specific assets were discussed, the sources said.

However, agreement on a standstill on the repayment of thedebt, a vital step in the negotiating process, is still monthsaway, they added, declining to be identified because thenegotiations are private.

A spokesman for Al Jaber declined to comment. The creditor committee is chaired by the National Bank ofAbu Dhabi and includes Abu Dhabi Commercial Bank, HSBC Holdings , RBS and UnionNational Bank .

A source at one creditor bank said that even after fiveyears it was unlikely that the lenders would be repaid in full,but that at present there were no other alternatives apart fromagreeing to some sort of extension.

(Reporting by Praveen Menon; Editing by Dinesh Nair and DavidHolmes)

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Keywords: ALJABER DEBT/EXTENSION