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Monday, 22 March 2010

Q&A - Dubai World to make debt offer to banks

State-owned conglomerate Dubai World is expected to propose a $26 billion debt restructuring plan to its creditors imminently, in a move seen as a test of the emirate's ability to honour commitments.

Discussions have focussed on a range of options, from an extension of maturities, to taking a haircut but with earlier repayment, and even the banks taking a possible stake in the indebted firm.

The following Q&A sets out the main issues regarding the upcoming proposal, and next steps in the process.