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Dubai Exchange Collapses: $1B Hole Leaves Creditors Scrambling

23 Oct

Summary

Dozens of creditors are seeking funds from a collapsed exchange.
The failed exchange has an estimated $1 billion balance sheet deficit.
Barclays and hedge fund Fidera are among those owed money.

Dubai's United Arab Emirates Exchange Center LLC, a remittance provider, has collapsed, leaving a substantial financial deficit. An estimated $1 billion hole exists in its balance sheet, prompting numerous creditors to seek recovery of their funds.

Among the entities pursuing claims are Barclays Plc and the London-based hedge fund Fidera Ltd. These creditors are among dozens who state they are owed money by the failed exchange. The significant financial shortfall indicates a severe crisis for the remittance provider.

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