Dubai World meets creditors; no 'standstill' pact yet

Dubai World meets creditors; no 'standstill' pact yet

Atlantis hotel, built on the man-made Palm Jumeirah island off the Dubai coast, is seen behind a string of villas on Monday. Dubai's heavily-indebted group, Dubai World, began talks with its lenders over its request to restructure 22 billion dollars in debt but has made no specific proposals, a company spokesman said. AFP

In a statement  on Monday, Dubai World said it held a meeting in the emirate with its creditor banks involved in the restructuring of the group's debt.

"The purpose of the meeting was to provide an update to the banks on the development of the group's restructuring plans as it seeks to reach a standstill agreement with financial creditors," the company noted.

Last month, Dubai World announced that it would seek additional time to pay back its debts worth USD 59 billion, a move that spooked global markets on concerns of another financial meltdown. Later, the entity revealed that it would look to restructure debts of USD 26 billion.

Abu Dhabi extended USD 10 billion loan to Dubai last week. Out of that, little over USD 4 billion went towards repaying debts of Dubai World's real estate arm Nakheel.
Stressing that the firm would seek a "standstill" in an orderly way, Dubai World said it has "assurances that the Government of Dubai... will provide financial support to cover working capital and interest expenses to ensure the continuity of key projects".
Dubai World has reportedly met with its creditors for the first time after the November announcement.

The conglomerate's advisers -- Deloitte, Rothschild and Clifford Chance -- were also present at the meeting.
According to the statement, Dubai World would work closely with creditors towards a "consensual solution" for the benefit of all lending banks, trade creditors and other stakeholders affected by the restructuring.
Earlier in the day, most of the markets in the UAE closed marginally down.
Dubai stock exchange's benchmark DFM Index ended the day at 1,828.88 points. Abu Dhabi market's General Index slipped to 2,727.83 points.

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