Dubai World agrees debt deal with key banks
Today Dubai World said that it had reached an agreement “in principle” with most of its bank lenders to restructure debt worth $23.5bn (£16.4bn). It would be left with debts of $14.4bn after the restructuring.
But the deal must still be approved by other banks that were not involved in the negotiations. The terms of the restructuring, include converting $8.9bn of government debt into equity.
The government of Dubai and Dubai World had tabled this offer to bank lenders in March 2010 after three months of negotiations.
Dubai World (Arabic: دبي العالمية) is an investment company that manages and supervises a portfolio of businesses and projects for the Dubai government across a wide range of industry segments and projects that promote Dubai as a hub for commerce and trading.
It is the emirate’s flag bearer in global investments and has a central role in the direction of Dubai’s economy. Assets include DP World which caused a storm when trying to take over six US ports, and Nakheel, its property arm, which built The Palm Islands and The World developments, and Istithmar World, its investment company. It is chaired by Sultan Ahmed bin Sulayem.