Dubai World to offer full debt repayment: report
By Raissa Kasolowsky and Rania Oteify | March 18, 2010 1:32 AM EST
Officials from Dubai and neighboring emirate Abu Dhabi have been working with restructuring experts to devise a viable debt restructuring plan acceptable to some 97 creditors to Dubai World, the state-controlled holding company.
Dubai World will propose to repay the debt over seven years, the Dubai-based broadcaster said on its website.
Implementing the proposal would cause banks to book losses this year due to the differences between the proposed rate and the rates in the original contracts, the report said.
Any interest losses should be declared in banks' financial statements this year, the broadcaster cited "informed banking sources" as saying.
Saudi-owned Al Arabiya also cited the sources as saying a problem had developed in the accounting process that could force Dubai World to review some minor technical, but "not fundamental," aspects of repayment.
Dubai shocked the market in November when it said it would ask creditors to delay repayment on $26 billion in debt linked to Dubai World.
A last-minute $10 billion bailout from wealthier Abu Dhabi helped Dubai avert an embarrassing default on an Islamic bond linked to developer Nakheel, builder of the artificial palm-shaped islands off Dubai.
The firm, which ringfenced key assets like ports operator DP World from the restructuring, has been in talks with a seven-member committee which represents the 97 creditors.
A seventh lender, Bank of Tokyo-Mitsubishi, a unit of Mitsubishi UFJ Financial Group, joined the panel this year.
(Reporting by Raissa Kasolowsky and Rania Oteify; writing by Thomas Atkins; editing by Karen Foster)
Join the Conversation
- Tourre on stand says email in SEC case 'not accurate'
- Syrian authorities blocking access to needy in Homs - Red Cross
- Faith in European Union at low ebb, EU poll says
- Former UBS banker gets 18 months, $1 million fine, for muni bid-rigging scheme
- U.S. judge halts challenges to Detroit's bankruptcy bid
- Black Friday 2014 Sale: Top Deals On Game Consoles Xbox One, PS4, Nintendo Wii U And More
- Walmart Pre-Black Friday 2014 Sale On Nov. 21, 2014 Includes Discounts On The 'NBA 2K15' For PS4 And The 'Skylanders Trap Team’ Starter Kit [WATCH VIDEO]
- More Bad News for Android 5.0 Lollipop As Problems Come In for Nexus and Other Devices
- BlackBerry Classic (aka Q20) Keyboard Shortcuts Explained In A Quick Video
- US To Supply Defensive Lethal Weapons To Kiev – A Vey Alarming Signal, Says Russia
- Amazon Black Friday 2014 Deals Start On Nov. 21, 2014 Including Limited-Time Lightning Deals And Deals Of The Day On Clothes, Toys, Jewelry, Watches, Bags, Accessories And Electronics
- Samsung Galaxy Note Edge Battery Life Test Shows Its Curved Display And Build Has Impacted Its Battery Performance