Dubai Group lenders said to seek early exit option
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Mon July 30, 2012 5:20 pm

UAE. Dubai Group LLC's creditors are seeking an option to be repaid early as the investment company controlled by Dubai’s ruler reorganizes US$6 billion of bank debt, according to three people familiar with the talks.

Under the early exit proposal for the 10-year debt restructuring, banks can choose to be repaid the market value of their loans after five years, said two of the people, who asked not to be identified because the information is private.

Banks opting for the exit clause are also seeking a guarantee that Dubai Group will have the cash to repay in case it can’t raise funds by selling assets, some of which are considered indivisible, one of the people said. A Dubai Group spokeswoman, who asked not to be identified because of company policy, declined to comment.

Dubai Group, controlled by Dubai Holding LLC, is one of several companies in the emirate reorganizing debt after the global credit crisis eroded the value of its assets. Royal Bank of Scotland Group Plc (RBS), Commerzbank AG and Standard Bank Group Ltd. (SBK) abandoned 18 months of restructuring talks with the investment company after failing to reach an agreement, two people familiar with the matter said on July 10.

Dubai Group invests in financial services industry and owns property in the U.S., according to its website. It holds stakes in companies including Dubai-based investment bank Shuaa Capital PSC, Cairo-based investment bank EFG-Hermes Holding SAE and BankMuscat SAOG (BKMB) in Oman, the country’s biggest lender. 

Dubai Group appointed eight banks to represent creditors in 2011 to negotiate the terms on US$10 billion of liabilities, of which it owed $4 billion to shareholders.

Emirates NBD PJSC (EMIRATES), the United Arab Emirates’ biggest bank by assets, said July 23 it had set aside 32 percent of the value of Dubai Group’s loans, or 1.47 billion dirhams ($400 million), to cover for losses as a result of the debt restructuring.

In April, Dubai Group proposed paying interest of 1 percent to 2.5 percent in a $6 billion debt restructuring, three people familiar with the plan. Under the proposal, secured creditors would be repaid in three years, while partially secured and unsecured loans will mature in 12 years with additional interest paid at the end of the term, they said.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: December 30, 2016
UAE. Booz Allen Hamilton forecasts energy trends in 2017; In the oil and gas industry, as well as in electric power, major internal and external forces are driving change, requiring industry leaders to revisit strategies.
date:Posted: December 21, 2016
UAE. PwC Middle East releases report on the Middle East's shopping habits; Online retail, rise of millennial shoppers and social media are disrupting the face of Middle Eastern retail.
date:Posted: December 20, 2016
INTERNATIONAL. Fjord Trends 2017 takes a provocative look at the digital developments to watch in the year ahead, according to Fjord, design and innovation from Accenture Interactive.
dhgate

Warning: include_once(/home/Domains/b/i/www.bi-me.com/public_html/adfiles/www/yes/shabs/mainads/mlads.php) [function.include-once]: failed to open stream: No such file or directory in /home/www/virtual/bi-me.com/htdocs/adfiles/www/yes/shabs/mainads/menu.gif on line 2

Warning: include_once() [function.include]: Failed opening '/home/Domains/b/i/www.bi-me.com/public_html/adfiles/www/yes/shabs/mainads/mlads.php' for inclusion (include_path='.:/usr/share/php:/usr/share/pear') in /home/www/virtual/bi-me.com/htdocs/adfiles/www/yes/shabs/mainads/menu.gif on line 2

Fatal error: Class 'MLAClient' not found in /home/www/virtual/bi-me.com/htdocs/adfiles/www/yes/shabs/mainads/menu.gif on line 7