The full support Dubai World has received from each of the government-owned company’s creditors will help to avert the impending clash with a specially appointed tribunal.
Support was announced by a spokesman this week and no other details were provided.
The Financial Times cited sources close to the situation and reported that debt held by the last creditor holding back on the approval of this deal was purchased by Deutsche Bank.
Even though Aurelius Capital management, a distress debt fund out of the US, purchased $5 million of debt through secondary market sources they did not meet a September 9 voting deadline for the deal.
The special tribunal was put in place to hear the various claims of creditors and was expected to push back the restructuring plans for an undetermined time period. With full approval Dubai World is able to avoid that process.
It was announced in September that Dubai World and 99 per cent of the creditors (by value) had come to an agreement.
This restructuring deal is the first of some major milestones the Emirate will pass through during the process of relieving the debt load difficulties that emerged last year.Paul Holdsworth, Staff Writer, Gulf Jobs Market News