Debt restructuring talks at Zabeel Investments, owned by the crown prince of Dubai, have ground to a halt with multiple loans in limbo and few assets available for sale, leaving banks facing steep haircuts, five people familiar with the matter said.
Zabeel, which has hospitality, property and private equity assets, owes approximately 6 billion dirhams ($1.6 billion) to mostly local banks. Despite nearly 18 months of talks, little progress has been made, four sources involved in the process told Reuters.
Despite its high-profile ownership, Zabeel -- which received two loans in 2009 from the Dubai Financial Support Fund (DFSF), including one to help meet a coupon payment -- has not been allocated more funds by the DFSF nor has it formally requested government help.
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