Dubai World, creditors mull new date for December debt

Dubai World, creditors mull new date for December debt

Dubai: State-controlled Dubai World is discussing with its bank creditors a new date for $3.5 billion in debt maturing on 14 December, a Dubai newspaper reported on Tuesday, citing British bankers.

Dubai World met the main creditors on Monday to discuss its request to delay repayment of $26 billion that shook global markets and confidence in the Gulf business hub.

“The talks aim at finding a final solution and how to reschedule the debt due, the matter at hand now is a date of the debt maturing this month," al-Bayan newspaper reported, citing the unidentified sources.

London-listed Standard Chartered, HSBC, Lloyds and Royal Bank of Scotland, along with local lenders Emirates NBD and Abu Dhabi Commercial Bank are on the creditors panel.

The UAE central bank told local banks to report any exposure to Dubai World in a circular dated 6 December, bankers said on Monday.

Dubai’s finance chief said on Monday that while Dubai World might sell some assets to finance its commitments, the government, which borrowed to transform the emirate from a desert backwater into the a major trading and tourism centre, would not make any disposals of its own.

He said that Dubai’s government and Dubai World were not the same, suggesting the emirate’s most valuable firms like Emirates, Dubai Aluminium (DUBAL) or its 21% London Stock Exchange stake would not be involved in a firesale.