Dubai World offers to repay 30% over five years

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Dubai World, the state-owned conglomerate, offered to repay 30% of money to its international creditor in five years and the rest in eight years, as per original expectations, according to a local newspaper.

The company, which is the parent to troubled developer Nakheel, is seeking to restructure $14.2 billion (AED52.15 billion) of debt, offered to pay 30 percent of the money to creditors in five years and the rest in eight years, Al Khaleej reported, citing a government official.

It comes as a breakthrough following almost two months of negotiations with creditors to the conglomerate, of which there are around 90 worldwide. Last November Dubai World asked for an extension to the maturity of its bonds.

Yesterday Nakheel PJSC said it was is “optimistic” of reaching a settlement with trade creditors in an emailed statement to a newswire, having met the Contractors’ Association of the United Arab Emirates to ensure settlement of creditors’ claims.

The combined liabilities of Dubai World and Nakheel totals $24.8 billion.