Dubai World Pushes for Debt Deadline Postponement - Middle East Real Time - WSJ:
"Investment conglomerate Dubai World may resort to a familiar, but in recent times rarely used, legal mechanism set up at the height of the emirate’s financial crisis to obtain the backing from its creditors to postpone a crucial debt repayment deadline.
The state-owned firm and advisor Blackstone BX -1.45% are currently discussing with an increasing number of lenders the terms of a deal that proposes to push back the 2018 repayment date of the state firm’s largest chunk of debt ($10.3 billion) by four years, people familiar with the matter said. As part of the offer, creditors would be repaid earlier the $4.4 billion debt tranche that is currently due in 2015.
The rationale behind the extension of the 2018 deadline is as follows: Dubai World officials hope that the emirate’s recent economic recovery will gain further traction which will support the company’s business outlook and raise the value of its assets. Bearing in mind that the World Expo will be held in 2020, Dubai World is buying itself a few more years to gain a more favorable position as it finally tries to draw a line under its $23.5 billion debt ordeal that began in 2009."
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