Dubai World submits restructuring proposal to creditors

TROUBLED Dubai World, owner of international port operator DP World, has announced that it has presented a restructuring proposal to the coordinating committee representing the company's financial creditors on the restructuring of US$23.5 billion of 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, reported the Dubai World Media Centre.

"This proposal represents the best possible solution for all stakeholders," said Dubai World restructuring officer Aidan Birkett. "It offers the company a strong future and the opportunity to maximise the value of its assets over the medium to long term."

The total amount of outstanding debt held by Dubai World's creditors, excluding the existing Dubai Financial Support Fund's (DFSF) claims, is $14.2 billion as of December 31.

The Government of Dubai acting through the 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-DFSF creditors will receive 100 per cent of the principal repayment through the issuance of two tranches of new debt with five and eight year maturities.

Dubai World has a number of strong companies within its portfolio and it will continue to focus on improving the performance of these assets to generate value for stakeholders.

(Source: www.schednet.com)