Dubai Holding arm, CoCom deal on restructuring $2.5b liabilities

Dubai: International Capital LLC, the private equity investment arm of Dubai Holding, said it has agreed to headline economic terms with the Coordinating Committee of lenders (CoCom) representing the Company’s financial creditors in regard to the restructuring of approximately $2.5 billion of liabilities.

The agreements in principle are subject to internal credit approvals by members of the CoCom and will require the support of the wider lender groups.

Under the agreed headline economic terms relating to $2 billion of liabilities, creditors will extend their debt for six years and receive a two per cent cash interest coupon on the restructured facilities. The relevant members of the CoCom represent 67% of these liabilities by value and have unanimously recommended the terms to their wider lender group.

An agreement has also been reached in relation to a $500 million facility where creditors will extend their debt for four years, with an unchanged cash interest coupon. The relevant member of the CoCom has also recommended this proposal to its wider lender group.

The successful agreements are an important milestone and will allow for the implementation of the management team’s long term business plan. This plan will maximise the value of the Company’s portfolio of assets for the benefit of all stakeholders. The portfolio is sound and is performing ahead of management’s expectations.

Following this agreement with the CoCom and after five years with Dubai International Capital, Chief Executive Officer Anand Krishnan has retired. Anand has steered the business through the economic downturn and has been instrumental in developing the portfolio companies and achieving this positive milestone in the restructuring process.

David Smoot, aged 41, currently Chief Investment Officer, has been appointed Chief Executive Officer. David has led the investment team at DIC for the last two years and has worked closely with the managements of DIC's portfolio companies to position them for future growth. David is Chairman of portfolio companies Almatis, Doncasters and Jordan Dubai Capital. Prior to joining DIC in June 2008, David was at Morgan Stanley where he held senior roles in principal investing and investment banking.