Dubai World creditors agree technical details
Dubai, May 4, 2010
Dubai World's creditors have agreed in principal on the technical aspects of a debt restructuring agreement and should reach an overall deal within two weeks, an Arabic language newspaper said on Tuesday.
Daily al-Bayan, citing an unidentified member of the negotiating committee of creditor banks, also said that the amount of interest being offered by Dubai World was unchanged at 1 per cent.
'Most of the banks agreed on the offer after studying the size of the remaining obligations on the group, and the amounts it will pay make it likely that all the banks will agree to sign the contract presented by the company,' the paper said.
Dubai unveiled a $9.5 billion rescue plan for Dubai World in March. Creditors to Dubai World are still in talks about the interest rate offer for the new debt issued under the plan.
The state-owned conglomerate offered lenders a 1 per cent interest rate and 1 per cent payment-in kind, a source familiar with the matter has said.
Simon Cooper, head of HSBC's Middle East operations, said on Monday that Dubai World's restructuring plan is 'very fair' and could be signed by lenders in coming weeks.
HSBC is one of Dubai World's major bank creditors.-Reuters