Monday 29 March 2010
Dubai World guarantees revealed
Dubai has offered Dubai World creditors some guarantees on rescheduled loan repayments in an additional concession that the government says illustrates the generosity of last week’s proposal to inject $9.5bn to help restructure the ailing conglomerate.
Since the tabling of the $24.8bn restructuring proposal, some creditors
to the state-owned conglomerate have complained about sub-commercial interest payments and preferential treatment for bondholders and financial creditors of Dubai World’s development arm Nakheel, which forms the lion’s share of the restructuring.
A person close to the government rejected these complaints, arguing that Dubai World’s unsecured creditors, which are owed as much as $14.2bn, received the best deal they could expect given others made loans on a secured basis.
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