Meeting of Dubai World with Bankers May Lead to Moratorium Proposal in Early January

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(DUBAI, U.A.E.) -- None of the more than 200 bankers who attended the meeting of Dubai World with its 90 creditor banks yesterday at the Dubai World Trade Center would speak on the record, but one report cited three bankers who claim that the next step will come in early January when Dubai World presents a moratorium or standstill offer to banks.

Dubai World which is trying to buy time to restructure debts of about $22 billion owns Nakheel, the creator of Palm Jumeirah and The World artificial islands, and the developers Limitless and Leisurecorp.  It holds international assets that include Cirque du Soleil and the London Eye ferris wheel.

The bankers created a committee to negotiate with Dubai World that will likely include Royal Bank of Scotland, HSBC, Lloyds, and Standard Chartered whose loans total approximately $5 billion as well as UAE banks Emirates NBD and Abu Dhabi Commercial Bank.

Meanwhile, according to a spokesman for the company, Dubai World will continue to pay interest on the $22 billion until an agreement is reached with the creditors. "Dubai World is committed to working closely with the banks' appointed coordinating committee to work towards a consensual solution for the benefit of all lending banks, trade creditors, and other stakeholders affected by the restructuring,"

The spokesman added that the Government of Dubai has assured Dubai World that it will assist in providing working capital and interest expenses through the Dubai Financial Support Fund as long as the moratorium agreement is implemented. 

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