Friday, 4 December 2009

Creditors to refuse Dubai World deal

Creditors of Dubai World are expected to reject a standstill agreement proposed by the company, threatening to drag out negotiations over $26bn (£15bn) worth of the conglomerate's debt.

Advisers involved in the talks tonight said that the process could take months as more than 100 accountants, lawyers, bankers and other professionals descended on Dubai from London. "There won't be a standstill agreement," one said.

By rejecting the company's proposal to put interest payments on hold, creditors automatically trigger a default, leading to inevitable further wrangling.

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