Dubai World to meet creditors soon

Dubai World to meet creditors soon
The Financial Express, December 03, 2009, Page 10

Reuters, Dubai

Government-owned Dubai World will meet its main creditors next week to discuss a request to delay payment on $26 billion in debt, which has shaken the global markets and confidence in the Gulf Arab business hub. The meeting will be the first formal encounter between Dubai and key lenders since the conglomerate that spearheaded Dubai’s rapid growth disclosed its debt woes on November 25.

An Abu Dhabi bank executive, who declined to be named, said London-listed Standard Chartered, HSBC, Lloyds and Royal Bank of Scotland, along with local lenders Emirates NBD and Abu Dhabi Commercial Bank were on the creditors panel.

The banks did not immediately confirm their participation on the committee, which an Asian-based banking analyst said was likely to reflect those with greatest exposure to Dubai World, whose debts were run up during a property boom that turned to bust with the global financial crisis last year.

Dubai World has asked creditors of its flagship property firms Nakheel and Limitless for a six-month debt repayment standstill as part of a restructuring plan. The most urgent question is the fate of Nakheel's $3.52 billion Islamic bond, which matures on December 14. The International Monetary Fund said on Tuesday that banks from Britain are the most exposed to the conglomerate.