Banks and corporations continued to be listed in the financial markets with their disclosures related to exposure to the debts of the "Phoenix Commodities" group and its subsidiaries, where the first Abu Dhabi Bank revealed a $ 73.2 million (AED 268.6 million) of exposure, while CBD, Sharjah Bank and the United Arab Bank confirmed There are no exposures, funds, financial transactions or insurance, according to official messages sent by the departments of these banks to the Dubai Financial Market and Abu Dhabi Stock Exchanges and they were published on their website.
According to the letter of "First Abu Dhabi Bank", the value of its exposure to the "Phoenix Commodities" group amounted to $ 7.7 million in the form of a joint loan with a number of international lending institutions.
He added that he has exposure to two of the group's companies, as the value of exposure to "Phoenix Global DMCC" is about $ 55.3 million in the form of bilateral loans and joint loans with other international lending institutions.
He indicated that he had a $ 10.2 million exposure to SMEG DMCC in the form of bilateral loans.
He pointed out that joint loans were secured through a set of guarantee mechanisms that include bank account undertakings, transfer of revenues in favor of the bank, and institutional guarantees. It also included insurance of bilateral loans for companies belonging to the group with institutional guarantees, some of which are guaranteed by cash margins.
It is noteworthy that 14 banks and financial companies announced yesterday the exposure of the company, which is based in the Dubai Multi Commodities Center, and news is being circulated regarding its subject to liquidation after it accumulated losses.
The company operates in the commodity trade and is owned by Indian businessman Gaurav Dhawan, and is seeking to restructure its debt after losses of about $ 450 million in one of the hedging contracts against currency differences in the midst of a wave of violent turmoil hitting the markets, according to the British newspaper "Financial Times", citing A stumbling request submitted by the holding company to the authorities in the British "Virgin Root".
The company is about 20 years old, employs about 2,500 employees, and has revenues of about $ 3 billion in 2019 from grain, coal and minerals trading.