Lenders to Dubai World will get a range of options including full repayment once Abu Dhabi decides how much additional support it will provide to Dubai, sources close to the discussions said yesterday.
Bankers in London and the Gulf are divided over how Dubai World should restructure the $26 billion debt, lead-ing the emirate to consider parallel offers in an effort to please all.
The final proposal, expected in the coming days or weeks, may include more than two tranches in an effort to meet the needs of its 97 lenders.
Local banks with little lending power may want whatever they can get fast, while international lenders with big-ger balance sheets can afford to wait.
Two of the restructuring options include repayment over three to five years with the principal discounted, and repayment over seven to nine years with no discount.
How much of a ‘haircut’ is included on the shorter-term deal is unknown.
No real decision on the deal has taken place yet, said one source.
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