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Dubai World to restructure US $26 billion of debt

Liabilities from Nakheel and Limitless under discussion

Less than half of Dubai World's debt is being restructured, said the company in a statement
Less than half of Dubai World's debt is being restructured, said the company in a statement

 State-owned conglomerate Dubai World has said it is in talks to restructure US $26 billion of debt, with developers Limitless and Nakheel’s liabilities under discussion.

Bloomberg reported that the company is seeking to delay payments on less than half of its estimated $59 billion debt obligations.

In a statement issued by Dubai World on Tuesday, the company confirmed that Infinity World Holding, Istithmar World and Ports and Free Zone World will be excluded from the negotiations because those companies “are on a stable financial footing.”

The amount of obligations Dubai World plans to restructure includes about $6 billion of Islamic bonds sold by Nakheel, according to the statement. The debt, known as sukuk, is governed by Shariah laws barring investors from profiting from the exchange of money.

“Initial discussions have commenced with the banks of Dubai World and are proceeding on a constructive basis,” Dubai World said in the statement. “It is envisaged the restructuring process will be carried out in an equitable way for the overall benefit of all stakeholders.”

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Construction Week - Issue 751
Oct 13, 2019