Dubai Group fails in bid to restructure bank repayments

4 February 2013

Dubai Group has failed in a bid to alter the way it will repay the charges related to its restructured debt.

Insiders with knowledge of the matter have today (4 February) told Bloomberg that around 20 lenders have turned down an offer from the Middle Eastern organization that would have seen them receive 18.5 cents on the dollar instead of full reimbursement over the next 12 years.

At present, Dubai Group is attempting to restructure debts worth some $6 billion as it seeks to repair the damage to its assets caused by the global economic downturn, which negatively affected many Middle East consortiums due to its impact on the worldwide property industry.

Previously, Royal Bank of Scotland and Standard Bank agreed to this offer in order to settle the arbitration proceedings it was involved in with the Dubai Group.

However, one of the sources indicated the organization will now be able to preserve cash after the 20 other financiers rejected the offer.

By Gary Cooper

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development