Wednesday 2 December 2009

Bank creditors join forces on response

Some of the world’s biggest banks have joined disgruntled bondholders in organising their response to Dubai World’s request for a restructuring of $26bn in debts.

One group of bank creditors – HSBC, Standard Chartered, Royal Bank of Scotland, Lloyds and local banks – have formed a steering committee, according to a person familiar with the matter, and are expecting to meet Dubai World representatives on Sunday or Monday.

Since the government’s department of finance last week took over the direct running of Dubai World and shocked the financial community by calling for a debt standstill until May, the focus has been on the delay in the repayment of the $4bn sukuk of Dubai World’s developer Nakheel.

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