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Dubai World debt restructuring agreed

2010-10-27 08:30:51

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.