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Some Dubai World creditors may offload loans: Report

Some creditors to Dubai World, which is currently restructuring $22 billion of debt, are seeking to offload loans to reduce their exposure to the conglomerate, the Financial Times reported.



Dubai: Some creditors to Dubai World, which is currently restructuring $22 billion of debt, are seeking to offload loans to reduce their exposure to the conglomerate, the Financial Times reported.
Debt traders told potential investors that there was a seller looking to offload about $100 million of Dubai World loans, according to an article posted on the paper`s website.

The sellers are believed to be mostly some of the smaller international banks which are unhappy with the restructuring process, according to a Dubai-based banker cited by the daily.
Dubai World is currently in talks with its creditors to finalise a formal standstill agreement that would last for six months, during which the conglomerate will further restructure its debt pile.

Bank creditors often opt to sell their loans at a discount, allowing distressed debt funds to build positions and possibly influence the restructuring process.

It is not certain the sales will take place, the paper reported.

Bureau Report

From Zee News

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