Wednesday 25 August 2010

Exclusive: Dubai World prized assets on sale to cut debt | Reuters

Dubai World DBWLD.UL believes it can raise as much as $19.4 billion from selling key assets over eight years, or almost double the current price, if creditors back its restructuring, a document obtained by Reuters showed.

The struggling state-owned conglomerate, which needs to get creditors to agree to its proposal by October 1 in order to go forward with the plan and clean up its balance sheet, thinks sales right now would generate a maximum of $10.4 billion, according to the document, which was obtained on Wednesday.

As a further incentive to creditors burned by the group's ambitious expansion in boom times, it is offering bankers a 'consent fee' of between $150,000 and $800,000 for agreeing to the proposed plan."

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