Dubai World, bankers set to meet Monday on revamp plan

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TEL AVIV — International bankers are scheduled to meet Monday with Dubai officials to discuss Dubai World’s effort to reach a standstill agreement on its billions of dollars of debt.

The Times of London reported about 100 banks, including a number of major U.K. financial institutions, are sending delegates to the meeting.

Dubai World owes British banks an estimated $5 billion, including as much as $2 billion to Royal Bank of Scotland,
the U.K. Times reported, citing debt specialist Capital Structure. The
largest creditors, led by RBS, have formed a steering committee for the
talks, the Times reported.

On Sunday, the Dubai Financial Market’s benchmark DFM Index closed 2.51 percent lower at 1832.09.

The most active issue by volume was Emaar, the
property developer behind Burj Dubai, the world’s largest tower, down
3.3 percent. Burj Dubai is set to open early next month.

Late in November, Dubai World’s announcement it needed the extension on payments on $26 billion of debt roiled financial markets worldwide.

That figure included $4 billion in an Islamic bond of Dubai World’s Nakheel property subsidiary. That bond matured Dec. 14 but had a two-week grace period before payment was due.

Last week, Dubai’s neighbor emirate, Abu Dhabi, provided Dubai with $10 billion of financing. Those funds were earmarked to pay the Nakheel bond and to Dubai World’s obligations through the end of April.

The National of Abu Dhabi reported during a visit to London recently, two top Dubai emirate officials told financial leaders that Dubai World, which has interests including property and ports, could pay all its debts.

Reuters reported, citing a banker it didn’t identify, that because Dubai World
owes so many different lenders via so many different debt instruments,
it’s unlikely to enter a single standstill agreement but rather will
take a piecemeal approach to settling the debts.

Via McClatchy-Tribune News Service.