Davidson Kempner completes landmark $1 billion+ debt restructuring of UAE-based plastic manufacturer

NEW YORK and MANAMA, Bahrain, Oct. 23, 2024 /PRNewswire/ -- Davidson Kempner Capital Management LP ("Davidson Kempner"), a global investment management firm, has completed the restructuring of more than $1 billion of debt in the JBF Group ("JBF"), a business with industrial plants in the United Arab Emirates ("UAE"), Belgium and Bahrain, which manufactures and supplies high-quality polyester resins and films used in the packaging industry.

The transaction is believed to be the first significant debt-for-equity transaction of this kind executed under the UAE's onshore bankruptcy law, setting a precedent for foreign investors in supporting businesses in the region with restructurings.

The transaction will see Davidson Kempner hold a significant majority equity stake in JBF Belgium and JBF Bahrain, with local and international investors holding the remainder.

The arrangement positions JBF Belgium and JBF Bahrain to prosper under the ownership of supportive and well-capitalized institutions who are committed to the long-term success of the business, allowing management to focus on innovation and growth, while preserving jobs at JBF's three plants in the Gulf region and Europe.

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Davidson Kempner Capital Management
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About Davidson Kempner Capital Management

Davidson Kempner Capital Management LP is a global investment management firm with over 40 years of experience and a focus on fundamental investing with a multi-strategy approach. Davidson Kempner has more than $37 billion in assets under management and over 500 employees across seven offices: New York, Philadelphia, London, Dublin, Hong Kong, Shenzhen and Mumbai. Additional information is available at: www.davidsonkempner.com.