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Illustration of the Meydan One mall project. Source: Business Wire |
Dubai developer Meydan is set to meet its creditors next week to discuss a $2.6 billion debt restructuring plan aimed at giving it financial breathing space, people familiar with the matter said.
PwC has been working with the company to put together a proposal, which will be presented at a meeting with bank creditors, the people said, asking not to be named because the information is confidential.
Meydan’s total debt amounts to about $4 billion, of which $2.6 billion requires restructuring, the people said. Under the plan, the company will ask creditors to extend repayments on that amount for a period said to be between eight to 10 years, the people said. The company also intends to sell assets to raise fresh funds, they said.
Spokespeople for PwC and Meydan declined to comment.
Long under pressure from an anemic domestic economy, the owner of one of the world’s most opulent horse racecourses has also had to contend with the coronavirus crisis that’s hurt Dubai’s tourism and transport industry. The developer may be looking to negotiate a reprieve from creditors while the emirate recovers from the global pandemic.
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