AlixPartners, which is managing Abraaj Group Ltd.'s US$1 billion healthcare fund on an interim basis, will redistribute the Dubai-based group's stake in the fund to its other investors, insiders told Reuters.

Local lenders whose loans to the group were secured against the stake are considering legal action against AlixPartners, as the decision could leave banks with no returns on their investments.

In September, Abraaj entered exclusive negotiations to transfer the management of its US$1 billion healthcare fund to TPG Capital Management LP, The Wall Street Journal reported. TPG is looking to merge Abraaj's healthcare assets with its US$2 billion Rise fund, which seeks to provide "accessible, affordable, quality healthcare" across South Asia and Africa.