Business News
Dubai World says "99 per cent" of banks agree to debt plan
Sep 10, 2010, 14:53 GMT
Dubai, UAE - Troubled conglomerate Dubai World said Friday that nearly all its creditor banks have agreed to a restructuring plan for some 25 billion dollars of its debt.
In a statement, the company said '99 per cent' of lenders had agreed to the plan, which would allow it to reach a final deal 'within weeks.'
Most of its major lenders are in the United Arab Emirates or in Britain.
Last November, Dubai World said it would have to freeze debt repayments and restructure over 23 billion dollars of its existing loans as it was unable to repay.
The company took out massive credit lines, as did other entities connected to the government of the emirate, to fuel a construction boom and other ventures in the Gulf country. The announcement of a freeze spooked global markets, especially as fears mounted over a sovereign default.
Dubai's total debt is estimated to be around 100 billion dollars, though some observers have given a higher figure.
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