Dubai World, parent company of giant real estate business Nahkheel, appears to have finally reached an agreement ‘in principle’ on how to repay debts of $23.5 billion.
The company shook the markets in 2009 by requesting that repayment to creditors be delayed by six months. This new agreement, which does not require additional funds from the Dubai government, will mean that payments are made in two tranches with the final payment coming in eight years.
Aidan Birkett, the man who heads up Dubai World’s efforts to restructure the debt described the reaching of agreement as an ‘important milestone.’
The deal still requires the approval of banks who did not participate in the negotiations. Chief executive of Gulfmena Alternative Investments, Haissam Arabi, described the deal as a closure of the ‘main chapter’ but said there was still potential for a ‘bumpy ride’ ahead.Sarah O'Connell, Staff Writer, Gulf Jobs Market