DP World safe, lenders Dubai World agree on debt terms

THE UAE's Dubai World, the state-run holding company that owns global terminal operator DP World, has reached an accord with its lenders on the rescheduling its US$25 billion debt.

The otherwise prosperous terminal operator DP World, which was always said to be outside its parent's debt problems, was still subject to fears that it would dragged in and sold off if no payback deal was found acceptable to lenders. That threat has now greatly diminished.

Said the government communique: "The Government of Dubai is pleased with this significant outcome and with the speed at which it has been achieved, given the complexity of the situation and the large number of creditors involved."

Said Sheikh Ahmad Bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee: "This agreement formalises a strong consensus around a fair and balanced restructuring proposal and is a key step towards putting Dubai World on a sound and stable financial footing while enabling it to realise the full potential of its underlying businesses."

Earlier in the year, 60 per cent of Dubai World's debt holders agreed to a rescheduling scheme, but not the remaining 40 per cent. Today, all but a few are in the fold and agree on how and when the debt will be paid.
(Source:www.schednet.com)