Global General

Dubai World may still repay debts in full

(Xinhua)
Updated: 2009-12-20 20:10

ABU DHABI: The state-owned conglomerate Dubai World, which seeks a standstill on some $22 billion of debts, could still fully repay its creditors, a local newspaper reported on Sunday.

The full repayment of all bank loans was discussed as "a medium-term possibility" during talks between British financial leaders and Sheikh Ahmed bin Saeed al Maktoum and Mohammed al Shaibani of the Dubai Supreme Fiscal Committee, who recently paid a visit to London and Washington, The National said.

"They made clear there were a number of options the government of Dubai saw as feasible and desirable for Dubai World and repayment in full was one of them," a person who attended the talks was quoted as saying.

According to the newspaper, the total debts of those parts of Dubai World earmarked for restructuring, mainly its property subsidiaries Nakheel and Limitless, amount to some $22 billion after repayment of about $4 billion for Nakheel's sukuk, or Islamic bond.

The government of Dubai, a member of the oil-rich federation United Arab Emirates (UAE), announced on November 25 that it would ask Dubai World's creditors to agree to a debt moratorium of at least six months as a first step towards restructuring.

On December 1, Dubai World confirmed that its debt restructuring process related to a total debt of $26 billion, of which a $4.1-billion sukuk was due on December 14.

Nakheel, the real estate developer which built the famous Palm Jumeirah island near Dubai's coast, said it would pay back the sukuk within two weeks last Monday, hours after Abu Dhabi injected $10 billion in order to save Dubai World from immediate default.

Dubai World is due to meet creditors Monday in the first formal session of talks aimed at resolving the group's debt position, The National said.