Dubai World gets creditors' nod for debt restructuring plan
Debt-ridden conglomerate Dubai World today said it has received approval from 99 per cent of its creditors to restructure debt of about USD 25 billion.
The intensifying debt turmoil at Dubai World had roiled global markets late last year, after the state-owned entity sought more time to repay loans running into billions of dollars.
The restructuring proposal puts the company on a sound financial footing, helping it to realise value for the benefit for all stakeholders.
"... about 99 per cent of creditors by number (have agreed to the restructuring plan), it noted.Earlier this year, the conglomerate and its main creditors had decided to restructure bank loans worth more than USD 14 billion as well as government liabilities to the tune of nearly USD 9 billion.
Dubai Supreme Fiscal Committee's chairman Sheikh Ahmad Bin Saeed Al Maktoum in a separate statement today welcomed the creditors' green signal for Dubai World's debt revamping plan.
"The agreement formalises a strong consensus about a fair and balanced restructuring proposal and is a key step to putting Dubai World on a sound and stable financial footing," he noted.
Dubai World, which had piled up massive debts during the real estate boom, was hit by the global financial meltdown that primarily squeezed credit availability in the market.Going by estimates, Dubai and many of its state-owned companies have a total debt of more than USD 100 billion.
