International Banks Meet Dubai World
Bank June 9th, 2010
LONDON – A group of international banks and regional meeting with the Dubai World for the first time on Monday to discuss efforts to restructure the company in debt for $ 26 billion.
As quoted by Reuters on Tuesday (8/12/2009), the meeting was reported the Financial Times is a long process. Where this meeting also involved the major creditors who wish set up a committee.
In addition, the process of debt restructuring is key to the Islamic bonds or sukuk, issued by Nakheel, a company’s real estate subsidiary of Dubai World, which is scheduled to be redeemed on December 14, for $ 4, 05 billion.
The report quoted from someone close to the negotiations say that there are different opinions among the borrowers.
“Some lenders think if there is bad credit, everyone must stop. On the other hand, some people believe that the sukuk must be paid back by all means,” the source disclosed.
In addition, companies listed on the London Standard Chartered, HSBC, Lloyd, and Roy Bank of Scotland (RBS.L) is scheduled to attend the meeting along with the borrower from the United Arab Emirates Abu Dhabi Commercial and Emirates NBD.
Central Bank of United Arab Emirates have also told local lenders to report their exposure to the Dubai World and related entities.
As is known, a consortium of Dubai World has recently asked for suspension of debt payments (standstill) to six months to foreign creditors. Dubai World requested postponement until May 2010.
Debt that must be borne by Dubai World for $ 60 billion. When including interest, which must bear the burden of corporate groups that government support be approximately $ 80 billion.
