Dubai Holding agrees $555m refinancing deal
Dubai, December 31, 2010
Conglomerate Dubai Holding's main unit has reached a deal with lenders to convert a $555 million revolving credit facility into a five-year term loan, the company said in a statement.
Dubai Holding's loss-making hospitality and property arm, Dubai Holding Commercial Operations Group (DHCOG), had extended for a third time the loan due November 30, to December 30.
It stalled on repayment in July and September, reinforcing doubts over Dubai's ability to resolve its debt troubles.
"Dubai Holding Commercial Operations Group (DHCOG) LLC, along with Citibank, Royal Bank of Scotland and Standard Chartered Bank are pleased to announce that a consensual agreement has been reached," the statement said.
DHCOG, a unit of the conglomerate owned by the emirate's ruler, took a big hit from its exposure to Dubai's property crash and said in June it might sell assets to deal with its debt after posting a $6.2 billion loss for 2009.
State-owned conglomerate Dubai World sent global markets reeling last year when it requested a standstill on almost $25 billion of debt. The company secured unanimous approval for its restructuring plan in under a year.
Financial services firm Dubai Group, also owned by Dubai Holding, had missed two payments on separate loans in recent weeks, sources said in November. - Reuters