Arif Naqvi, the founder and former group CEO of Dubai-based investment firm Abraaj Holdings, is understood to have reached an interim settlement with creditor Hamid Jafar over a $300m loan.

The deal was reached last week, although it has not yet been signed, according to a Bloomberg report. The report cited Habib al-Mulla, executive chairman of Baker McKenzie and lawyer of Naqvi.

This development follows an announcement made on 15 July that a UAE court in Sharjah had dismissed a bounced check case against Naqvi and Abraaj director Muhammad Rafique.

It emerged the case was dismissed after Jafar, founder of Sharjah-based Crescent Group, waived his rights to pursue the claim.

MEED understands the case relates to a $200m loan to Abraaj and a $100m loan to Naqvi.

Abraaj Holdings and Abraaj Investment Management Limited have been undergoing a court-supervised provisional liquidation process due to non-payment of debts.

Abraaj’s troubles began last year following allegations by high profile investors, led by the Bill & Melinda Gates Foundation, that a $1bn healthcare fund had been diverted and used to pay management fees and other expenses.