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)
Most Popular Slideshows
- Typhoon Rammasun Claims 18 Lives in China, Incurs $4.32B Losses (PHOTOS)
- Kate Middleton's Pregnancy Hearsays: Possible Evidence Revealed [PHOTOS]
- Malaysia Airlines MH17: Vital Black Boxes Finally Land in Hands of Malaysian Authorities, Rebels Announce Ceasefire (PHOTOS/VIDEOS)
- Selena Gomez Turns 22 Today, Celebrates Early without Justin Bieber: Top 12 Interesting Facts About the Singer [SEE PHOTOS]
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
- Motorola Moto G Vs. Xiaomi Mi3 – Low in Price, High -level Features
- Google Nexus 8 Release Date Soon Along with 2 More HTC Android Tablets – Reports
- Sony PlayStation 4 Outsells a Resurgent Xbox One in June
- Killer Xiaomi Mi4 at $369 Likely to Come With 5.0-Inch Display, Snapdragon 801 Processor, 3GB RAM and More
- NVIDIA Shield Gaming Tablet with Tegra K1 SoC Reported to be Released on July 29
- BlackBerry Passport Video Leak, Release Date, Five Fresh Features to Anticipate [Watch YouTube Clip] --Reports
- Iphone 6 Release Date Fast -Approaching, Reuse and Recycle Program Now in Australia