Creditors put Dubai World debt up for sale: report | business | Hindustan Times
Today in New Delhi, India
Mar 29, 2017-Wednesday
New Delhi
  • Humidity
  • Wind

Creditors put Dubai World debt up for sale: report

business Updated: Jan 18, 2010 14:18 IST

Dubai World's bank creditors have offered their loans for sale ahead of the restructuring of the conglomerate's debts, in a bid to reduce exposure, says a media report.

"Bank creditors to Dubai World that are owed billions of dollars are trying to reduce their exposure to the debt-laden conglomerate by offering their loans for sale ahead of an expected restructuring of the company's $22 billion of debt," the Financial Times reported.

According to the publication, debt traders told potential investors last week that a seller was seeking to offload about $100 million of loans, however, it is uncertain that the trade would take place.

Attributing to investors and traders the, daily said the debt could be sold at 70 per cent of face value.

Other loans are believed to have been offered privately to potential investors. While the identity of potential seller has not been revealed.

"The sellers are mainly some of the smaller international banks...which are starting to get discouraged by the whole process," the report quoted a banker based in Dubai as saying.

Bank creditors often choose to sell their loans at a discount in the secondary market in debt restructuring allowing distressed debt funds to build positions and influence the restructuring negotiations.