Pacific Controls in bid to restructure debt
Delayed payments from some of its clients, as economy slows, partly to blame
Pacific Controls, a Dubai-based Technology company, is in talks with banks about restructuring debts of 1.4 billion dirhams ($381 million), according to Reuters.
Pacific Controls appears to be taking take advantage of a special mechanism set up by the UAE’s banking federation to help firms struggling to repay debt, Reuters says.
Launched in 2000, the privately owned company benefited from the boom in the UAE's economy as it provided technology services to local businesses, more recently expanding into cloud computing and the internet of things.
Pacific Controls' clients include a number of state institutions, such as Dubai Civil Defence and the Roads and Transport Authority, government controlled companies including telecoms firm Etisalat, as well as banks, hospitals and schools, its website showed.
It also has clients outside the UAE, such as Saudi Arabian telco Etihad Etisalat 7020.SE (Mobily) and King Abdullah University of Science & Technology (KAUST).
Pacific Controls has encountered difficulties in part because of delayed payments from some of its clients, sources told Reuters.
KPMG has been appointed as financial advisor to assist with the restructuring and turnaround of Pacific Controls, the company said.
It has also selected a new CEO, as Dilip Rahulan - who was the firm's chief executive and executive chairman - is currently recuperating from illness. He will stay on as chairman.