Dubai Group LLC’s creditors are seeking an option to be repaid early as the investment company controlled by Dubai’s ruler reorganizes $6 billion of bank debt, according to three people familiar with the talks.
Under the early exit proposal for the 10-year refinancing, banks can choose to be repaid the market value of their loans after five years, said two of the people, who asked not to be identified because the information is private.
Banks opting for the exit clause are also seeking a guarantee that Dubai Group will have the cash to repay in case it can’t raise funds by selling assets, some of which are considered indivisible, one of the people said. A Dubai Group spokeswoman, who asked not to be identified because of company policy, declined to comment.
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