Three banks, including the Royal Bank of Scotland, have launched legal proceedings against a Dubai investment firm, calling for immediate repayment of loans after abandoning talks aimed at restructuring the company’s $10bn in debts.
The UK lender, Commerzbank and Standard Bank said they had launched “legal recourse available under the facility documentation” against Dubai Group, an investment arm of the Dubai Holding conglomerate owned by Dubai’s ruler, Sheikh Mohammed bin Rashid al-Maktoum.
The move, believed to be a private arbitration case, marks a more aggressive strategy from global lenders, who have for the past few years negotiated to extend maturities when dealing with the workout of Dubai’s $110bn debt pile.
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