Dubai World likely to seek 8 more years to repay debt
The crisi-ridden conglomerate Dubai World is likely to ask its creditors another eight years to repay its debt worth about $ 22 billion, according to a media report.
The Dubai government-owned group rattled world markets late last year after it sought more time to pay back debt, running into billions of dollars.
The Sunday Times has reported that Dubai World is to ask its creditors for up to eight more years to pay back debt to the tune of $ 22 billion.
According to the report, Dubai World would promise its lenders that it would be “able to pay back all the money it owes if it can get the extension”.
The debt restructuring proposals would be put to a seven-member committee of the group’s senior creditors. “Banks will be offered repayment terms of between five and eight years, depending on the status of their loans,” it added.
Going by the report, both sides still need to negotiate the rate of interest that Dubai World would pay. “Abu Dhabi is also expected to take part in the repayment deal by providing further financial support to its troubled neighbour,” the report said.
