Dubai to meet local banks, propose no haircut - MEED
March 10, 2010 |11:51 | Banks By : Team X
Debt-laden Dubai World, which will meet with the two local banks on its creditor committee this week, will propose that creditors get their principal investment back, magazine MEED said.
The magazine, which did not name sources, said Dubai World is expected to propose a debt restructuring that involves creditors receiving their principle investment, meaning there will be no `haircut' on their outstanding loans.
Dubai World will also suggest the outstanding loans have some form of guarantee from the government of Dubai, the magazine said. is still unclear, while they wait to be repaid. If little or no interest is paid, it would equate to a substantial haircut over several years, the magazine said, citing one Dubai-based banker close to the situation.
The repayment term is expected to be between five to 10 years. The meetings with Emirates NBD and Abu Dhabi Commercial Bank come after Dubai World met with foreign lenders in London this week to discuss the restructuring of its $26 billion debt pile.
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