Dubai: Dubai World, its advisors and the Coordinating Committee (CoCom) of its creditors will, on Thursday, presented a financial restructuring proposal involving $23.5 billion (Dh86.31 billion) of debt to smaller creditors. The meeting took place at 11am on Thursday.
The aim is to reach a minimum approval percentage of 66.67 after the CoCom, which represents seven creditors holding 60 per cent of the dues, approved the proposal in May.
A statement released by Dubai World said: “As is customary at this stage of the process, this was an informational session and no resolution was sought in the meeting.
“Creditor banks will now have the opportunity to review the information provided before responding to the proposal. The Company expects to complete the restructuring over the coming months.”
“There will be no vote at Thursday’s meeting. There will be a detailed presentation, a Q&A session and then the banks’ representatives will go off and discuss the terms with their own credit departments,” a person close to the negotiations told Gulf News, prior to the meeting.
“The effort will, of course, be to get full approval on the terms”, but Dubai World now requires only a small number of the remaining lenders to sign off on the proposal, which involves $14.4 billion (Dh52.89 billion) of bank loans to be rescheduled for payment over five and eight years, the rest being borrowings between Dubai World and its subsidiaries.
The restructuring process started in November 2009 and is not expected to be finished before the end of this year.
“Wrapping up a restructuring of this size in a year would be incredible progress,” one analyst told Gulf News. He cited the examples of restructuring at Kuwait-based Investment Dar and Global Investment House, which dragged on for well over a year.
“And they were just a tenth of Dubai World’s restructuring size,” he said.
