Dubai world creditors to get multiple options?
Lenders to Dubai World will get a range of options including full repayment once Abu Dhabi decides how much additional support it will give its debt-laden neighbour, sources said.business Updated: Mar 14, 2010 21:48 IST
Lenders to Dubai World will get a range of options including full repayment once Abu Dhabi decides how much additional support it will give its debt-laden neighbour, sources said.
Bankers in London and the Gulf are divided over how Dubai should restructure the $26 billion debt pile dogging its flagship holding company, leading the emirate to consider parallel offers in an effort to please all, the sources said.
How this “framework of a proposal” shapes up depends largely on how much additional capital Abu Dhabi is willing to provide its neighbour Dubai, given that Dubai itself has little means of raising cash.
“Support from Abu Dhabi is the missing piece,” said one senior London banker active in the emerging markets. "There has to be a political angle to the possible solution as Dubai World doesn’t have enough to repay the debt.”
State-owned conglomerate Dubai World held informal talks with major creditors, which include HSBC and Standard Chartered , in London this week as it finalises a deal.
First Published: Mar 14, 2010 21:42 IST