Ashurst and CC lead as Damas International restructures debt

Ashurst and Clifford Chance (CC) have picked up key roles on the AED3bn (£505m) debt restructuring of Middle Eastern jewellery manufacturer and retailer Damas International.

Ashurst won a first-time appointment to advise Damas on the restructuring, fielding a team led by City finance partner Martyn Rogers (pictured), who headed a team of associates across London and the Middle East including Dubai senior associates Aaron Lee and Chris Young and City senior associate Adair Gordon-Orr.

CC acted for around 25 banks involved in the restructuring including Standard Chartered, Royal Bank of Scotland, HSBC and the Emirates National Bank of Dubai.

The magic circle law firm's team was led by Dubai banking and finance partner Peter Avery, assisted by senior associate Soren Nielsen. PricewaterhouseCoopers acted as financial adviser.

Rogers said: "The restructuring market in Dubai is relatively undeveloped, so we really had to go back to first principles, which was interesting. The feeling in the market is that things are starting to pick up, so it is important for companies to get themselves in shape in order to take advantage of this.

"The deal was also significant for us as a firm as this was the first time we've been instructed by Damas, which is a great testament to how we feel we're doing in the Middle East."

Damas, which was formed in 1907, has more than 320 stores across 12 countries selling jewellery and watches. The restructuring follows a financial scandal at Damas in 2010, when the company was investigated by the Dubai Financial Services Authority for misuse of assets. The three brothers who formerly controlled the business were ordered to repay around £69m and nearly two tonnes of gold they had taken from the company for personal use.