Creditors sue Dubai’s Pacific Controls
09 Apr 2017 - 21:26
Dubai: More creditors of Dubai technology company Pacific Controls are pursuing court action against the company as they seek to recoup some of the Dirham1.4bn ($381m) they’re owed, banking sources said.
The company, which has served clients including telecoms firm Etisalat and Dubai Civil Defence, has been struggling since last year as cashflow has dwindled. Several of the roughly 19 banks that have exposure to the company have now asked for court consent to seize its data centre in Dubai and other assets, the sources said. Pacific Controls did not respond to comment.
The data centre acts as security against a syndicated loan the company has been unable to make payments on, while other assets the firm holds are security against bilateral debt the firm has not been able to meet, the sources said. Pacific Controls is one of many Gulf companies that are floundering as more than two years of low oil prices drag down economic growth and business activity, leaving banks with a rising number of bad loans.
Mashreq, National Bank of Fujairah, Dubai Islamic Bank, Ajman Bank, United Arab Bank and Noor Bank are among the lenders pursuing legal action.