Dubai World gets full support for restructuring

Thursday, 28 October 2010 04:28 - - {{hitsCtrl.values.hits}}

State-owned Dubai World has secured support from all its creditors for a $25 billion debt restructuring plan, a spokesman said on Wednesday, helping to avoid a drawn-out battle with a special tribunal.

The spokesman did not provide further details.

The Financial Times reported that Deutsche Bank had bought the debt held by the only creditor to have held off approving the deal, citing people familiar with the situation.

US-based distressed debt fund Aurelius Capital Management bought $5 million of debt in the secondary market, but missed the 9 September deadline to vote on the deal.

Dubai World can now avoid having to go through the special tribunal set up to hear creditor claims, a process lawyers had said could have pushed back the restructuring for an indeterminate amount of time.

Dubai World announced last month that it had reached agreement with 99 percent of its creditors by value.

The restructuring agreement is one of the first major milestones to resolve the debt headache which has plagued the Emirate since last year. — Reuters