Some Dubai World creditors may offload loans: Report
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.