The UAE’s Abu Dhabi Capital Management (ADCM), a subsidiary of investment group Abu Dhabi Financial Group, is understood to have launched a $50m bid to acquire Abraaj Investment Management Limited (AIML), the asset management arm of the embattled Dubai-based investment firm.

The conditional offer is significantly lower than the $125m offered for AIML by New York-based Cerberus Capital Management prior to Abraaj’s application for provisional liquidation in the Cayman Islands, according to a Reuters report.

Both firms are understood to have outlined similar conditions for their offers, which preclude taking on the existing liabilities of either Abraaj’s holding company or its asset management business.

ADCM is also understood to have indicated that it will not buy companies owned by Abraaj.

On 18 June, the Grand Court of the Cayman Islands appointed representatives from UK-based PwC and US-based Deloitte as joint provisional liquidators (JPLs) for Abraaj Holdings (AH) and AIML, respectively.

The appointments seek to ensure that stakeholders’ rights are protected as the firm implements a $1bn restructuring plan.

“The court-supervised restructuring of AH will have minimum impact on the day-to-day operations of the management of the funds and their portfolio companies,” Abraaj said in a statement.

MEED understands the JPLs are granted “extensive powers” for the protection and management of Abraaj’s assets, including maintaining oversight of board and management activities.

Abraaj said its creditors have “provided full support for the JPLs to work alongside the company to formulate and implement a restructuring of the company’s liabilities”.

The court appointment comes 11 days before a Cayman Islands court is scheduled to hear the Kuwait pension fund’s petition to appoint US-based FTI Consulting as liquidator of Abraaj Holding for non-payment of a $100m debt.

Boston-based Auctus Fund also asked for the liquidation of AIML due to an outstanding debt of 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 by high profile investors led by the Bill & Melinda Gates Foundation that the $1bn healthcare fund had been diverted.

On 18 June, Sharjah-based low-cost carrier Air Arabia said it had appointed advisors to “protect its investment in Abraaj”. The publicly listed carrier has not disclosed the value of its investment in the firm. Abraaj founder and CEO Arif Naqvi is one of Air Arabia’s board of directors.

Air Arabia’s stock price plummeted by 7.08 per cent by close of trading on 18 June.