Dubai: Dubai International Capital, the investment arm of Dubai Holding, remains locked in negotiations with banks over extending the deadline for a $1.25 billion (Dh4.58 billion) loan that matured November 30 as part of efforts to secure a larger debt restructuring deal about double the loan size, a company spokesperson said on Tuesday.
"We are in a de-facto extension period whilst we seek to achieve a long-term consensual agreement," the spokesperson told Zawya Dow Jones without providing any further details.
DIC in May asked lenders for a three-month extension on some of its debts that would allow it to implement a "consensual longer-term plan," which was later extended until November 30.
The company is attempting to restructure a total $2.6 billion worth of debt as part of the larger debt restructuring under way at its parent Dubai Holding. Debt at Dubai Holding to be restructured is estimated in the range of $8.8 billion to $12 billion, according to analysts.
Dubai Holding officials couldn't be reached immediately for comment.
DIC is unlikely to reach an agreement with banks over the debt before the second quarter, analysts say.
"Creditors are now showing signs of restructuring fatigue, combined with a degree of realism that this is a process where legal recourse is not going to be an option in the short term," a Dubai-based analyst said.
"The managements of lenders are definitely bored of the discussions, and would much rather do proper banking," he added.
