Most Dubai World creditors have agreed to the terms for restructuring the troubled conglomerate’s debts, according to reports.
“Most of the banks have agreed on the offer after studying the size of the obligations remaining on the group and the amounts it will pay,” Al Bayan said reported, citing an unidentified negotiator who represents the banks. It is likely “that all the banks will sign the contract presented by the comp-any,” the paper quoted him as saying.
The official said the banks would respond within two weeks.
On Monday, HSBC Bank’s Middle East CEO Simon Cooper called Dubai World’s restructuring proposal “fair” and said he saw no reason why it should not be signed in a few weeks.
The Dubai government said in March it would inject $9.5 billion into Dubai World, while the firm said it would issue two tranches of new debt matur-ing in five years and eight years.
Dubai World has said the debt owed to creditors is $14.2 billion, out of the $23.5 billion up for restructuring.
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