Dubai: Dubai World on Thursday announced in a separate statement that it has presented a proposal on the restructuring of its $23.51 billion total financial liabilities.
The proposed restructuring requires the agreement of Dubai World’s creditors which the company will work to secure in the coming weeks, the statement said.
Key terms of the proposal
The Government of Dubai acting through the Dubai Financial Support Fund (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-DFSFcreditors 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: “This proposal represents the best possible solution for all stakeholders. It follows extensive discussions with our creditors, a thorough review of Dubai World’s businesses and significant financial support from the Government. It offers the Company a strong future and the opportunity to maximise the value of its assets over the medium to long term.”
