Dubai World to Present Debt Plan This Month

Bloomberg -

Dubai World is on track to present a proposal to restructure about $26 billion of debt this month, a spokesperson of the Dubai Finance Department said.

Talks between Dubai World and the committee negotiating on the creditors’ behalf are ongoing, said spokesperson, who declined to be identified because of government policy.

Dubai World and its advisers will meet the company’s seven biggest creditors tomorrow to discuss the plans, MEED reported, citing sources it did not identify. The meeting will take place in Dubai, the London-based weekly said on its Web site today.

More than 90 banks are owed money by Dubai World. Seven of its biggest creditors, HSBC Holdings Plc, Royal Bank of Scotland Group Plc, Lloyds Banking Group Plc, Standard Chartered Plc, Bank of Tokyo-Mitsubishi UFJ Ltd., Emirates NBD PJSC and Abu Dhabi Commercial Bank PJSC, are negotiating with Dubai World on behalf of the lenders, according to bankers.

Dubai World, one of the emirate’s three main state-owned business groups, said Nov. 25 it would seek to delay repaying debt until at least May 30. The announcement sparked a plunge in developing-nation stocks and the largest increase in emerging- market bond yields over U.S. Treasuries in four weeks, while the cost to protect against a default by Dubai doubled.