Arif Naqvi’s lawyers were in negotiations in London described as aiming at a “conclusive” settlement Abraaj owes more than $1 billion to investors following its rapid collapse since February DUBAI: Talks to resolve the increasingly bitter stand-off between Arif Naqvi, embattled founder of Abraaj Group, and his creditors continued in London on Monday ahead of a crucial court case in the UAE, even as fresh allegations emerged of the troubled private equity group’s financial liabilities. Naqvi’s lawyers were in negotiations in London described as aiming at a “conclusive” settlement with representatives of Hamid Jafar, head of the Sharjah-based business family, who is holding checks to the total value of $300 million signed by the Abraaj boss and one of his lieutenants. The checks were signed after Jafar advanced loans to help bail out Abraaj last December, but were dishonored on presentation. It is believed the talks have focused on what assets Naqvi can put up to satisfy UAE prosecutors that he is attempting to repay the debt. A ruling from the Sharjah court hearing the matter is expected on Tuesday on the second of three checks, this one to the value of $217 million, after an earlier case involving a $48 million check was resolved after negotiation. Meanwhile, a group of investors in one of the Abraaj funds — Private Equity Fund IV — has claimed that they are owed $300 million, nearly three times previous estimates, by Abraaj because of “mismanagement and apparent fraudulent activity,” according to a letter sent to court-appointed liquidators to Abraaj and reported by Bloomberg. The investors have appointed restructuring firm Alvarez & Marsal to help them get money back from Abraaj. They complain that the liquidation of assets is taking too long, sources close to Abraaj confirmed. The investors are also seeking to stop paying management fees to Abraaj, citing breach of duties to the fund, according to the letter. Alvarez did not comment. Abraaj owes more than $1 billion to investors following its rapid collapse since February, when allegations surfaced that some $200 million of funds had been directed to investments for which they were not intended. Winding up proceedings are underway in Dubai, where some of the Abraaj business operations are regulated, and in the Cayman Islands, where the holding company is domiciled. Naqvi’s most pressing issue is the Sharjah court case. Writing a check for a large amount without sufficient funds is a criminal offense in the UAE, and he faces arrest should he return to the Emirates while the case is unresolved. People familiar with the situation have told Arab News that Naqvi has offered significant real estate assets in Europe to help settle the court case but that talks have stalled over the valuations of the assets on offer. If the matter of the checks is not settled, Naqvi could face an extradition request from UAE authorities, according to Al Tamimi & Co., the UAE law firm representing Jafar. Most European countries including the UK, where Naqvi is currently, will not grant extradition in cases of bounced checks, which they regard as a civil matter. However, some legal experts believe the size of the dishonored checks could justify a request on the criminal grounds of attempted fraud.