Banks and corporations continued to be listed in the capital 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 value of $ 73.2 million (268.6 million dirhams), while the Commercial Bank of Dubai, the Bank of Sharjah and the Arab Bank confirmed The United, the absence of exposure, funds, financial transactions or insurance, according to official letters sent by the departments of these banks to the Dubai Financial Market and Abu Dhabi Stock Exchange, and they were published on their website.
According to what was stated in the message of «First Abu Dhabi Bank», the value of exposure to the group «Phoenix Commodities» $ 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 pointed out 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, which include bank account undertakings, transfer of revenue for the bank’s interest, and institutional guarantees. It also included insurance of bilateral loans for companies affiliated with the group with institutional guarantees, some of which are guaranteed by cash margins. It is noteworthy that 14 banks and financial companies disclosed the day before yesterday that they were exposed to the company, which is based in the Dubai Multi Commodities Center, and news is being circulated about being subject to liquidation after it accumulated losses.
The company is engaged in commodity trade, 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 Financial newspaper. The British Times, quoting a stumbling request submitted by the holding company to the authorities in the British Virgin Islands. The company is about 20 years old, it employs about 2,500 employees, and its revenues amounted to about three billion dollars in 2019 from the grain, coal and minerals trade.
• 7.7 million dollars, exposure value of "First Abu Dhabi" on "Phoenix Commodities", through a joint loan with international institutions.
• 3 banks confirmed that they had no exposure to the “Group”.