Deadline looms for Pacific Controls $381m debt plan
Reports claims Pacific Controls is in talks with creditor banks to discuss restructure plans
Pacific Controls is due to present its debt proposal plan to a number of creditor banks in a bid to restructure its $381m debt by the end of October.
According to Reuters, a source stated that after the company faced problems earlier in the year, it began talks with banks to discuss repayment plans. Sources have reported that the Pacific Controls struggles were due to delays in payments from clients who were affected falling oil prices.
Furthermore, two banking sources who requested anonymity, revealed that Sanjay Nayak, who was recently appointed to chief executive, has reportedly spoken to clients to discuss the continuation of payments and contracts. Additionally, they said a newly-formed creditor committee made up of seven international and local banks are handing negotiations.
KPMG has also been appointed as financial advisor to assist with the restructuring and turnaround of Pacific Controls, the company said.
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. 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).