Close to 100 creditors will meet with Dubai World officials on Dec. 21 for crunch talks to restructure most of its $26 billion pile of debt, bankers with knowledge of the matter told Zawya Dow Jones.
"All bank creditors are invited, and this is to discuss bank debt only," one banker invited to the meeting said, adding that 97 others lenders will be involved in the gathering that could determine whether the emirate will default on the obligations of one of its once prized state-owned companies.
"This is when, presumably, Dubai World will formally ask for a standstill agreement," the banker said.
Government-owned Dubai World wants banks to agree to restructuring $26 billion of debt. The Dec. 21 meeting falls a week after the maturity of a $3.52 billion Islamic bond, or sukuk, issued by Nakheel, Dubai World's troubled real estate unit.
The Nakheel bond isn't part of the talks, bankers with knowledge of the matter said.
Deloitte's Aidan Birkett has been appointed to restructure Dubai World by the Dubai Department of Finance, which is essentially overseeing the company. Rothschild and Moelis & Co. are also advising on the restructuring.
A spokesman for Dubai World declined to comment as did the Dubai Department of Finance when called by Zawya Dow Jones about the meeting on Wednesday.
The Dubai government-owned newspaper Al Bayan reported Wednesday that U.K. lenders, HSBC Holdings Plc (HSBA.LN), Lloyds Banking Group (LLOY.LN), Standard Chartered (STAN.LN) and Royal Bank of Scotland (RBS.LN) have agreed to reschedule Dubai World's debt.
A spokesman for HSBC in Dubai declined to comment on the report earlier.
U.K. law firm Ashurst has managed to gather about 40% of bondholders for the Nakheel sukuk together to form a committee amid fears the company will default on the debt, persons familiar with the matter told Zawya Dow Jones Wednesday.
New York-based hedge fund QVT Financial LP is helping to rally holders of bonds in Nakheel, including hedge funds and other money managers in New York and London, The Wall Street Journal has reported.END
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