Dubai World set to update over debts
BELEAGUERED state-owned investment vehicle Dubai World is to meet its creditors later this month to update them on its multi-billion dollar debt restructuring plans.
It follows an agreement made in principle in May with the creditors’ coordinating committee for the government-owned conglomerate to restructure $23.5bn (£15.6bn) of debt, which left the emirate uncertain about its economic health.
Three sources from the group’s 80 creditors yesterday said the meeting will take place in the emirate on July 22, more than three weeks behind schedule.
A source close to the restructuring confirmed to City A.M. the joint meeting between Dubai World and the creditors will be taking place, but said a final resolution is not expected for some months.
“The meeting is for the coordinating committee and company to present the detailed plan to the wider banking group,” they said. “But no vote or agreement will be sought at the meeting. It is just a presentation and Q&A.
“Final agreement will still take some months from this presentation as banks inevitably come back with questions.”
The agreement, formalised in May, accounts for about 60 per cent of Dubai World’s bank lenders. The meeting in 10 days will require the remaining creditors holding 40 per cent of its debt to consider the deal before a final agreement can be reached. Banks hold $14.4bn of the debts being restructured and the government holds the rest.
Dubai World shocked global markets last November when it asked for a six-month suspension on debt repayments.