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Debt deal with small lenders soon: Dubai World

Dubai World is in talks with non-core creditors to get their approval on its restructuring plan, with a final agreement with all creditors expected by November 21, a local daily reports on Sunday citing banking sources and comments from a Dubai World spokesperson.

The state-owned company’s spokesman told this scribe that there was no date fixed for any agreement with small creditors, but it could be agreed in a few months.

Responding to a question for any possibility of the agreement before the end of the year instead of November 21 deadline, he said since there is no fixed date so ‘no comment’.

The company is talking to non-core creditors, or banks not part of a seven-member coordinating committee, despite already having gained approval of more than two-thirds of its lenders, Al Ittihad reports citing banking sources familiar with the negotiations.

“The company is negotiating with the rest of the lending banks to get agreement on details related to how to calculate the interest rates and the suggested time tables to meet them,” the paper reports citing its sources.

The paper also cites a Dubai World spokesperson confirming that the company started talks with its non-core creditors and that the discussions have made “significant progress.” The spokesperson says final agreement from all creditors is expected between September 21 and November 21, it added.

Dubai World in May agreed in principle with its main creditors to restructure $23.5 billion of debt. A person familiar with the matter told Zawya Dow Jones late last week that Dubai World plans to sell assets over eight years to raise more than $19 billion to pay off creditors, as part of its restructuring plan.

abdulbasit@khaleejtimes.com