Zabeel Investments in $956m bank debt deal
Dubai, October 4, 2012
Indebted Zabeel Investments, which is owned by Dubai's crown prince, has reached a $956 million debt deal with lenders, according to al-Khaleej newspaper on Thursday.
The Arabic-language daily, citing an unnamed senior banking source, did not give further details on the agreement which it said was for more than Dh3.5 billion ($952.90 million) in bank debt.
"Zabeel Investments has succeeded in settling its debt," the newspaper quoted the source as saying.
Zabeel, which has hospitality, property and private equity assets, owes approximately Dh6 billion to mostly local banks. Talks on restructuring the debt had ground to a halt in January.
A Dubai government official confirmed this week that the management of Zabeel had been taken over by state-owned Dubai Real Estate Corporation.
Last month, Abu Dhabi Commercial Bank filed a legal claim for $107.13 million against Zabeel, saying it failed to meet repayment obligations.
Zabeel, owned by Crown Prince Hamdan bin Mohammed al-Maktoum, once had stakes in Sony Corporation and planemaker Eads . Formed in 2006, the company also owns the lavish Zabeel Saray hotel on Dubai's man-made Palm Jumeirah island. – Reuters