Chairman of UAE’s Abraaj resigns

The chairman of troubled UAE investment firm Abraaj Holdings Sean Cleary has resigned, it was confirmed on Thursday.

The private equity group is currently undergoing a court-supervised restructuring following allegations of misused funds.

“We can confirm that Sean Cleary has resigned from his position as chairman of Abraaj Holdings,” the company said in a statement.

“Following the appointment of the joint provisional liquidators, Sean determined that his role as an independent non-executive director would serve no further legal or fiduciary purpose in the interests of creditors or other stakeholders,” it said.

“Sean is fully supportive of the appointment of the joint provisional liquidators for the holdings and investment management units of Abraaj,” it added.

Also read: UAE court adjourns criminal case against Abraaj founder

Dubai’s Abraaj said to owe $20m to staff

The company’s troubles started after a dispute with some of its investors over the use of their money in a $1bn healthcare fund.

The group denied it misused the funds.

On Monday, it was announced that the co-chief executives of Abraaj Investment Management Ltd (AIML) would be stepping down from the board of the unit.

Read more: Abraaj investment management business co-CEOs resign from board

That came after a court in the Cayman Islands appointed provisional liquidators for Abraaj Holdings and AIML last week as the firm tries to restructure its debt.

Abraaj also agreed to sell its Latin America, Sub Saharan Africa, North Africa and Turkey Funds management business to US investment management firm Colony Capital last week.

Read more: Dubai’s Abraaj sells part of its fund business to US firm Colony Capital