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Dubai World revises offer to lenders

DUBAI — Dubai World, which is in talks to restructure $26 billion in debt, has made a revised offer to lenders but the sweetened deal is unlikely to satisfy banks, analysts said on Thursday.

The offer is for a 1 per cent interest rate and 1 per cent payment-in-kind, a source familiar with the matter said, an upgrade from an opening 1 per cent interest rate offer which was rejected as being too low.

Dubai unveiled a $9.5 billion rescue plan for state-owned conglomerate Dubai World and its property unit Nakheel in March.

The source, who asked not to be identified, said Dubai World added the 1 per cent payment-in-kind option, a lump sum interest payment at the end of a loan maturity, to sweeten the offer.

“(It’s) fish market haggling over prices, only this is played out in the media,” said another person familiar with the process.

A Dubai government spokeswoman declined to comment on Thursday, reiterating that the government’s plan called for a cash interest payment as well as a payment-in-kind.

Dubai World is in talks with a core panel of seven banks — five foreign banks and two local ones — which represents more than 97 creditors.—