Davidson Kempner Capital Management has completed a landmark $1 billion debt restructuring of JBF Group, a global packaging materials supplier, in a move that sets a precedent for future investments in the UAE under its bankruptcy law.
Davidson Kempner, a global investment firm, has finalised the restructuring of more than $1 billion of debt in JBF Group, a manufacturer of polyester resins and films with industrial plants in the United Arab Emirates, Belgium, and Bahrain. These materials are primarily used in the packaging industry. The restructuring deal is notable for being the first significant debt-for-equity transaction carried out under the UAE’s onshore bankruptcy law.
The deal is expected to serve as a model for future foreign investments and restructurings in the UAE, signalling increased investor confidence in the region’s legal frameworks for corporate recoveries.
Under the terms of the agreement, Davidson Kempner will now hold a majority equity stake in JBF Belgium and JBF Bahrain, with local and international investors maintaining minority stakes. This restructuring provides the business with a stronger financial foundation, enabling the two JBF subsidiaries to continue their operations with greater security and capital backing.
This new arrangement places JBF Belgium and JBF Bahrain in a position to thrive under Davidson Kempner’s ownership, with the investment firm pledging long-term support for both subsidiaries. This stability allows the management teams to shift focus towards innovation and growth, while also ensuring job security for the workforce at the company’s three plants in the Gulf region and Europe.
The successful restructuring highlights the UAE’s growing attractiveness for foreign investors, with its legal and financial frameworks proving effective in supporting distressed businesses through debt restructuring processes. Davidson Kempner’s involvement and the scale of the transaction demonstrate the firm’s commitment to the long-term success of JBF Group.
The deal will not only preserve jobs but is also expected to drive further development within the company. With the new investment and capital infusion, JBF is better positioned to focus on innovation in its polyester resin and film manufacturing, which plays a vital role in the global packaging industry.
The completion of the transaction marks a significant moment for both Davidson Kempner and JBF Group, with industry observers viewing it as a positive indicator of the region’s business environment. Additional information is available at: www.davidsonkempner.com.
