Kuwait’s pension fund is trying to force private-equity firm Abraaj Group into bankruptcy proceedings over allegedly not repaying a $100 million loan, according to a court document, upending efforts to save Dubai’s star investor, the Wall Street Journal reported. In a document filed May 22 in the Cayman Islands court system, Kuwait’s Public Institution for Social Security says Abraaj is “substantially insolvent” and unable to repay the loan and $7 million interest by the agreed upon date, which is Sunday. The Kuwait fund has asked the court that Abraaj’s assets be liquidated and distributed to creditors in proceedings in the Cayman Islands, where the firm’s holding company is incorporated. The petition marks the latest blow for Abraaj since investors in its $1 billion health-care fund, including the Bill and Melinda Gates Foundation, disputed how their money was used. Some of those investors hired a forensic accountant, who found that Abraaj had moved sums of money out of the health-care fund to finance its business rather than buy or develop hospitals and clinics in Africa and Asia as it was intended.
