KPMG to represent Dubai's creditor banks
London, November 29, 2009
Banks who lent over $30 billion to Dubai World, the debt-laden state investment group, plan to appoint auditors KPMG to represent them in talks over recovering their money, the Independent on Sunday newspaper reported.
The banks include HSBC, Britain's biggest bank, as well as Royal Bank of Scotland, Lloyds Banking Group, and Standard Chartered, the paper said without citing sources.
KPMG will be formally appointed once the creditor banks have created a steering committee comprising five or six of the main lenders to lead the negotiations, it added.
No one at KPMG was immediately available to comment.
Dubai said last week that it would delay payment on debt issued by Dubai World and property developer Nakheel, igniting fears over sovereign debt defaults and sending global markets sharply lower.
Dubai World and Nakheel have oustanding debt of $59 billion. – Reuters