Dubai: Dubai World on Thursday said, it has presented a restructuring proposal to the Coordinating Committee representing the company's financial creditors on the restructuring of $23.51 billion (Dh86.2 billion) of total financial liabilities held by Dubai World, the holding company, as at December 31, 2009.

The proposed restructuring requires the agreement of Dubai World's creditors which the company will work to secure in the coming weeks.

Key points

  • The total amount of outstanding debt held by Dubai World's creditors, excluding the existing Dubai Financial Support Fund's (DFSF) claims, is $14.2 billion as at December 31, 2009.
  • The Government of Dubai acting through the DFSF is proposing to convert $8.9 billion of debt and claims, representing 38 per cent of the total amount of standalone debt and guarantees of Dubai World, into equity, subordinating its claims to other creditors;
  • In addition the DFSF will commit to fund up to $1.5 billion of cash into Dubai World to fund the Company's working capital and interest payment commitments that will arise from the new debt facilities;
  • Non-DFSF creditors will receive 100 per cent principal repayment through the issuance of two tranches of new debt with five and eight year maturities.

Aidan Birkett, Chief Restructuring Officer of Dubai World, said: "Today's plan is the result of extensive discussions between the Government, Dubai World, Nakheel and our stakeholders. It offers a fair and equitable solution for creditors and customers. If agreed, this plan will provide Nakheel with a stable, financial footing, enabling it to meet its outstanding obligations to customers and to continue its role in the ongoing development of the UAE real estate market."

Dubai World has a number of strong companies within its portfolio and it will continue to focus on improving the performance of these assets to generate value for stakeholders.

The Tribunal framework, established by the Government of Dubai in December 2009, remains available to protect Dubai World and its companies, their creditors and other stakeholders.

A restructuring plan regarding Nakheel, the other entity affected by the restructuring programme initiated by the Government of Dubai on November 25, 2009, has also been presented to Nakheel's creditors.

After careful review, Limitless has also been excluded as it does not require Government support. All other Dubai World entities continue to be excluded from the restructuring process.