Dubai: State-owned Dubai World will use provisions of the emirate’s special bankruptcy law in the restructuring of $15bn of debts.
A meeting of international bank creditors in London this week gave majority approval to the new refinancing scheme, which has been under discussion since April.
The new proposal seeks to extend the repayment of $10.5bn of debt due in 2018 for an extra four years. In exchange, a smaller chunk of $4.5bn maturing next year will be repaid early.
Dubai World has offered so-called “sweeteners” in the form of higher interest rates and collateral of shares in its terminal operator DP World.
Dubai World has many other maritime interests including shipyard group, Drydocks World. [04/12/14]