The lenders to Dubai World are looking to offload their loans, Financial Times reports. The move is to reduce exposure to the conglomerate ahead of the potential restructuring of its $22 billion in debt. Dubai World’s parent has a $5.5 billion loan facility, of which $2.1 billion is due for repayment in June.
HSBC and Royal Bank of Scotland, which are leading the six-strong creditors committee, are in talks over Dubai World’s restructuring plan, under which the group is looking to finalize a formal standstill agreement lasting for six months. The debt is likely to be sold at 70% of the face value.
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