Dubai Group, a struggling unit of the ruler of Dubai's personal investment firm, has settled with banks who brought legal action against it to secure repayment of their share of $10 billion of debt, raising hopes a wider restructuring can now go ahead.
Royal Bank of Scotland (RBS.L), Commerzbank (CBKG.DE) and South Africa's Standard Bank (SBKJ.J), later joined by Egypt's Commercial International Bank (COMI.CA), began court moves in September after nearly two years of talks on reorganizing the company's obligations failed to yield an agreement.
Under terms presented to the banks in December, Dubai Group's parent Dubai Holding - the investment arm of Sheikh Mohammed bin Rashid al-Maktoum - will buy out their debt plus that of any others in the same syndicate of lenders wishing to exit early for 18.5 cents in the dollar, said two sources with direct knowledge of the agreement.
Dubai Group settles lawsuit on way to wider $10 billion debt deal | Reuters
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