The allegations of mishandling investors' funds against Abraaj, a firm that has grown to become one of the most trusted private equity names and one of the developing world's most influential investors, shocked investors and financial institutions triggering distress sig-nals. Hue and cry raised complaints by some investors having ulterior motivation that the Dubai-based Abraaj Group had mishandled their money. The forced firm to file for provisional liquidation in the Cayman Islands. Such a court-supervised provisional liquidation would allow Abraaj to restructure debt, negotiate with creditors and sell assets if needed. It would also allow a moratorium on the holding company's unsecured claims. The filing would also enable Abraaj to continue talks with possible equity partners for a deal to acquire its fund management operations ie excluding the $1 billion healthcare fund which was the subject of allegations. This application had the full support of the Company's secured creditors who reiterated their desire for provisional liquida-tors to be appointed to formulate and implement a restructuring of the Company's liabilities which would be in the best interests of all concerned.
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