The Board of Damas International today announced that the three Abdullah brothers have given a formal commitment to repay US$165 million to the Company over the next 18 months.

The payment schedule is part of the formal settlement agreement between the Abdullah family and the Company, in respect of the repayment of transactions that led to the resignation of Tawhid Abdullah as CEO last month.

As part of the agreement, the Abdullah brothers have undertaken to pay an amount of US$55 million within 6 months; an aggregate of US$110 million within 12 months; and an aggregate of US$165 million within 18 months; and, should there be any balance in excess of the US$165 million as a result of any findings arising from the PwC investigation or otherwise, any such excess amounts in cash and/or unencumbered assets within 24 months. All payments are to be made in cash and/or unencumbered assets.

The Abdullah brothers have also produced a list of assets that are potentially available for liquidation to be converted by them into cash and/or to be contributed to the DamasDamas as unencumbered assets to meet their obligations under the Settlement Agreement. Such assets consist principally of real estate investments in the Middle East and North Africa (including a number of residential and commercial buildings and units in the UAE and an investment in a shopping mall in Turkey.

As part of the Settlement Agreement, the Abdullah brothers have also pledged 350 million of their shares in the Company that would be transferred in whole or in part back to the Company in the event of the terms of the Settlement Agreement are breached. This share pledge is in the process of being perfected.

The two non-Executive Directors who are on the three-member Oversight Committee were appointed by the Board to execute the terms of the Settlement Agreement. As part of their remit, they are expected to oversee the asset recovery process.

The Settlement Agreement stipulates that asset recovery is due to commence immediately. The Oversight Committee has directed the Chief Financial Officer of the Company to oversee the process of valuation on its behalf and to that effect Cluttons, the independent property consultants, have been engaged by the Company to perform valuations of the real estate assets identified by the Abdullah brothers.

The Company will continue to keep the market informed of key developments.