Tags: US | Shuns | Dubai | World | Debt | Deal

Report: US Fund Shuns Dubai World's $24.9 Billion Debt Deal

Monday, 13 Sep 2010 05:52 AM

 

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U.S.-based distressed debt fund Aurelius Capital Management is the only creditor to have not signed on to Dubai World's $24.9 billion restructuring deal, the Financial Times said on Monday citing people close to the talks.

The company, which bought $5 million of debt in the secondary market, could still approve the deal, people close to the matter told the paper. But by missing the September 9 deadline to vote on the deal, Aurelius Capital will not receive the incentive fees paid to creditors that signed up in time.

State-owned conglomerate Dubai World reached an agreement with over 99 percent of its creditors by value to restructure its almost $25 billion in liabilities, the Dubai government said in a statement on Friday.

Dubai World said in a separate statement it was well positioned to close the restructuring in coming weeks.

A Dubai World spokesman was not immediately available for comment.

While Dubai World's agreement with most of its creditors is seen as a positive step for Dubai, the announcement came just days after a unit of Dubai Holding, the conglomerate owned by Dubai's ruler, said it will delay repayment on a $555 million loan, the second time it has failed to meet a repayment deadline.

© 2014 Thomson/Reuters. All rights reserved.

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