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Criticism of Dubai World Debt Restructuring Plan


Dubai : 30 March 2010

Some bankers are now arguing that the creditors of Dubai World and its subsidiary property investment company Nakheel are not being given the same concessions under the new debt restructuring plan. Many are now claiming that Nakheel are being given more concessions and deferred payment options than its parent company Dubai World.

However an unidentified source from the Dubai Department of Finance has denied these claims and says that on balance both companies are being offered the same terms albeit that some agreements are different because they are dealing with two separate legal entities who are structured somewhat differently but overall there is no preferential treatment being given in either case.

While some banks still feel they are being unfairly victimized in the terms of the restructuring plan there is no possibility of the deal faltering and a determined effort is being made to get this deal through as soon as possible and certain sources are somewhat disappointed,  there appears to be some criticism of what started off being a deal that was both welcomed and praised.

As the loans being repaid were largely unsecured it is believed that the lenders should be happy to be recouping their initial losses and also to be receiving certain payments in kind  and interest concessions to make up for certain shortfalls in repayments.

Paul Holdsworth, Staff Writer, Gulf Jobs Market News
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