Dubai World Offers Collateral, Early Cash To Revise $25bn Debt Deal
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Dubai World Offers Collateral, Early Cash To Revise $25bn Debt Deal

Dubai World Offers Collateral, Early Cash To Revise $25bn Debt Deal

The company is also offering to return cash throughout the loan’s lifespan, more assets as collateral, a higher interest rate and an early repayment of a first tranche of money due next year.

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State-owned conglomerate Dubai World is offering creditors a series of incentives to allow it to amend the terms of its $25 billion debt restructuring deal, including shares in global ports firm DP World, sources aware of the matter said.

The company is also offering to return cash throughout the loan’s lifespan, more assets as collateral, a higher interest rate and an early repayment of a first tranche of money due next year. In addition, the Dubai government will make extra funds available to Dubai World.

In return, the conglomerate wants the creditors to grant it more time to meet a second, larger repayment currently due in 2018.

Dubai World declined to comment when contacted by Reuters. The sources spoke on condition of anonymity as the information is not public.


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