Monday 21 December 2009

Bank creditors to hold Dubai World talks

Representatives of more than 90 Dubai World bank creditors are expected in the emirate on Monday for a first face-to-face meeting between the company and its banks since it told them to prepare for the restructuring of the $22bn in debts needed to keep it out of the insolvency courts.

Creditors will meet a six-strong co-ordinating committee, including HSBC and RBS, to hear Dubai World sketch out plans for its restructuring, now troubled developer Nakheel’s $4.1bn obligation on December’s sukuk will be paid off thanks to a $10bn bail-out loan from Abu Dhabi.

To meet the government’s terms for further support on the remaining $5.9bn bail-out, Dubai World is expected to ask creditors to freeze debt repayments until May next year.

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