Dubai World has signed a final agreement with 80 creditors to restructure USD 24.9 billion in debt under a two-tranche debt repayment plan, marking the conclusion of approximately 12 months of negotiations, the company has said.
In a statement released on Wednesday, the company said that its creditors will receive USD 4.4 billion over five years, while the second tranche will involve USD 10.3 billion over eight years at a fixed interest rate of 2.4 per cent. The amount includes debt held by banks, while the remaining debt is held by the Dubai government.
"Dubai World today (Wednesday) signed a final agreement on restructuring all of its financial obligations with all its debtors, who number 80," the company said in a statement carried by the UAE's official news agency, Wam.
Dubai World won creditor support from all its creditors in November for the restructuring plan. In another statement, Shaikh Ahmad Bin Saeed Al Maktoum, the President of Dubai Civil Aviation and Chairman and CEO of Emirates airline and Group, said that they are very optimistic about Dubai World's capability to overcome the repercussions of the global financial crisis and all its challenges.
Dubai World's main lenders include Royal Bank of Scotland Group, HSBC Holdings, Lloyds Banking Group, Standard Chartered, Bank of Tokyo-Mitsubishi UFJ, Abu Dhabi Commercial Bank and Emirates NBD, who, according to Dubai World, have offered their full support to the restructuring plan.
The statement added that the value of Dubai World assets in various parts of Dubai World have recorded very good growth in the past few months. DP World, which published its results on Thursday, has announced a 35 per cent growth in profit for 2010.
State-owned Dubai World sent shock waves when it first announced in November, 2009, that it would delay payments on its debt, then worth USD 23.8 billion. This was followed by the formation of a three-member Supreme Committee chaired by Shaikh Ahmad to oversee the company and its restructuring plans.
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