Dubai International Capital, the investment arm of Dubai Holding, is seeking to restructure as much as $2.6 billion worth of debt by Nov. 30, twice as much as the amount that matures next week, people familiar with the situation said.
The push for the larger amount comes after the emirate reached a deal with creditors in October for about $25 billion of outstanding debt owed by the government's other flagship conglomerate, Dubai World. Dubai World shocked investors a year ago Thursday when it announced that it would delay debt payments.
The Dubai World deal buoyed sentiment in the city-state, one of seven semi-autonomous emirates that make up the United Arab Emirates. Dubai's oil-rich neighbor, Abu Dhabi, the capital of the U.A.E., has provided billions of dollars of aid to Dubai after its property-market bubble burst, reinforcing among investors a sense of underlying government support for Dubai and its corporate entities.
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