Dubai-based and Cayman Islands-registered investment firm Abraaj Group is expected to file for provisional liquidation before 29 June in response to petitions made by two creditors, Kuwait’s Public Institution for Social Security and Boston-based Auctus Fund.

The move is a legal necessity to allow the firm to implement a $1bn restructuring plan. The court-supervised process would allow Abraaj to repay debt over time by selling assets and put a stand on unsecured claims against the company, according to a report by the London-based Financial Times.

A Cayman Islands court is scheduled to hear on 29 June the Kuwait pension fund’s petition to appoint US-based FTI Consulting as liquidator of Abraaj Holding for non-payment of a $100m debt.

Auctus Fund asked for the liquidation of Abraaj Investment Management Limited, the firm’s asset management arm, due to an outstanding debt of just over $100m.

Auctus Fund’s petition follows an independent auditor’s report that Abraaj commingled an estimated $95m after it faced cash shortages.

Money from Abraaj’s $1bn health care fund was used to pay management fees and other expenses, a report by US-based Deloitte found, although the audit firm ruled out embezzlement or misappropriation.

An earlier audit conducted by Netherlands-based KPMG found “no misuse of funds” following allegations of diversion of the $1bn healthcare fund by high profile investors led by the Bill & Melinda Gates Foundation.

Prior to this crisis, Abraaj was considered one of the developing world’s most influential investors, managing close to $14bn for institutions and agencies from the US, UK and other countries.

In 2017, Abraaj sold its shares in UAE-based ride-hailing firm Careem to Saudi Arabia’s Kingdom Holding. A year earlier, it sold its 80 per cent shareholding in Jordan Aircraft Maintenance (Joramco) to Dubai Aerospace Enterprises (DAE).