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Anna Nordqvist tees off at the Dubai Ladies Masters, with the marina skyline in
the background Dubai says its economy is expected to grow by 2.3% as foreigners
began to flock to its shores again
State-owned Dubai World has signed up the last remaining creditor to a $23bn (
15bn) debt restructuring.
The last investor - US distressed debt fund Aurelius Capital Management - sold
its position to Deutsche Bank, one of the company's main creditors, according
to a report in the Financial Times.
The holding company said in September that 99% of its creditors had already
agreed to the new repayment terms.
It means Dubai World can now avoid a lengthy tribunal to complete the deal.
Dubai World manages investments for the Emirate of Dubai, including the Dubai
ports, foreign investments, and major real estate development such as the
famous palm islands.
Debt for equity
Aurelius had bought the debt in the secondary market after the company
defaulted on its debts last year, but missed the 9 September deadline to vote
for the restructuring.
The terms of the restructuring involve converting $8.9bn of government debt
into equity, and would leave Dubai World with $14.4bn of remaining debts.
The news means that a special tribunal, which had been set up to reach a
settlement with any creditors that held out from the deal, will no longer be
needed.
Meanwhile, there was good news for Dubai on the economic front.
A government spokesman said that he expected a growth rate this year of 2.3%,
thanks in part to a 7% rise in population during the first nine months of the
year as immigration picked up again.
Meanwhile, Dubai Ports World (a subsidiary of Dubai World) reported that its
global container levels had returned to the pre-crisis peak levels of 2008.