Monday 6 February 2012

Dubai Group Said to Seek Up to 10-Year Delay in $6 Billion Restructuring - Bloomberg

Dubai Group LLC, an investment company owned by the emirate’s ruler, offered to repay creditors over five to 10 years as it seeks to restructure $6 billion of bank debt, a banker familiar with the proposal said.
Secured lenders, who are owed $3.2 billion and whose loans are backed by assets, have been offered repayment over five years, said the person, declining to be identified because the negotiations are private. Partially secured and unsecured lenders, who are owed the remaining $2.8 billion, will be paid over eight and 10 years, the banker said.
Dubai Group, controlled by Dubai Holding LLC, is one of several companies in the emirate seeking to restructure loans after property prices and asset values slumped and credit markets froze. Dubai World, one of the emirate’s three main state-owned holding companies, reached a deal in March with about 80 banks to delay payments on $25 billion of debt.

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