Saturday, 5 December 2009

Bondholders stand firm on repayment this month

Lawyers representing holders of sukuk bonds from Nakheel, the real estate unit of Dubai World, are expected to reject any attempt by the government-owned holding company to call a standstill on its debts.

After a conference call held yesterday, Ashurst, the firm representing the bondholders, is expected to write to Dubai World saying that more than 25 per cent of bondholders expect full repayment of $4bn by December 14 or, after a two-week grace period, on December 28.

One bondholder said: "We are not going to give the government the luxury of a standstill that avoids default. We expect full repayment, so we are keeping the pressure as high as possible."

No comments:

Post a Comment