Dubai Holding extends £355m loan

CONGLOMERATE Dubai Holding’s main unit has extended a $555m (£355m) loan due on 30 November by one month, reinforcing niggling doubts over Dubai’s ability to resolve its debt troubles.

This was the third extension for Dubai Holding’s loss-making hospitality and property arm, Dubai Holding Commercial Operations Group (DHCOG). It previously delayed the loan in July and September.

“The extension is required to finalise a new long-term facility,” the company said yesterday.

Analysts say there was general optimism that Dubai would be able to successfully restructure debt at Dubai Holding and its units.

State-owned conglomerate Dubai World sent global markets reeling last year when it requested a standstill on almost $25bn of debt. The company secured unanimous approval for its restructuring plan in under a year.

DHCOG, a unit of the conglomerate owned by the Gulf Arab emirate’s ruler, took a big hit from its exposure to Dubai’s property crash and said in June it might resort to asset sales to deal with its debt after posting a $6.2bn loss for 2009.