Dubai: Union Properties to restructure debt to recover millions in 'misappropriated' funds

Union Properties said Monday it suspected that $42 million had been “misappropriated” by the company’s former officials, declaring nearly $800 million in accumulated losses in recent years.

The announcement comes as Emirati prosecutors announced in October they were investigating the firm.

Union Properties, known for building Dubai Motor City, had been trying to turn around its fortunes in recent years.

Last year “has been a difficult year for Union Properties as we uncovered widespread fraud and misconduct by the company’s former management involving forgery, misappropriation of funds and various other financial violations which has negatively impact the company’s financial health and been a severe breach of shareholder confidence,” managing director Amer Khansaheb said in a statement.

The losses represent nearly 70% of the company’s capital, the firm said in a filing. It attributed $565 million in value losses in 2017, with another over $300 million in 2021.

The company said it planned to “recover the misappropriated fund through legal procedures” and restructure its debt.

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