Dubai: Dubai World has agreed with a majority of creditor banks to amend and extend terms on around $14.6bn of its debt.
The agreement comprises early repayment of $2.92bn this year, and the extension of debt due in 2018 to 2022, Bloomberg reports.
The state-owned holding company, which owns stakes in DP World and shipyard Drydocks World, has also pledged additional collateral and increased pricing as part of the agreement, reports say.
Dubai World plans to seek court approval for the debt agreement through a Decree 57 process, a special tribunal in Dubai. The group has already achieved the at least 66.67% approval of the deal from its creditors by value. The process make take several months to complete, sources told Bloomberg.
The company's biggest creditors are banks including HSBC Holdings, Royal Bank of Scotland Group, Standard Chartered, Emirates NBD and Abu Dhabi Commercial Bank.
Jebel Ali Free Zone FZE, a subsidiary of Dubai World, was sold in November 2014 to DP World for $2.6bn as part of the holding company’s debt restructuring. [12/01/15]
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