Dubai World repayment plan hits an obstacle

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Dubai World and its creditors have hit an obstacle in negotiations over a proposed standstill on the conglomerate’s US$22 billion (Dh80.8bn) of debt, The National has learnt.

The Dubai Government-owned group said in November that it would seek to delay debt repayments to 97 banks as part of a plan to give Dubai World time to restructure while preventing creditors from pursuing legal action to recover what they are owed.

But informed sources said the banks had yet to agree to standstill proposals from Dubai World and the Dubai Financial Support Fund (DFSF), a government entity set up to distribute the proceeds of a $20bn bond programme to struggling state-owned firms.