DIC plans to restructure by year's end

Abu Dhabi: Dubai International Capital (DIC) plans to restructure its business by the end of the year, Chief Investment Officer David Smoot said.

"Our goal is to be out of the restructuring business by the end of the year and back into the growth phase," Smoot said.

Dubai's state-owned companies are struggling to repay loans as the worst financial crisis since the 1930s froze credit markets and prevented them from raising new debt.

Dubai World, one of tthree state-owned holding companies, announced last month that it had reached a deal with 99 per cent of its creditors to alter the terms on $24.9 billion (Dh91.38 billion) of loans.

DIC, owned by Dubai Holding LLC, presented a plan to creditors to sell assets over five years to repay $2.6 billion of debt, two people with knowledge of the plan said September 15.

Six banks led by HSBC Holdings and Emirates NBD are negotiating with DIC on behalf of 26 lenders on its debt restructuring plan, one of the people said.