Oct. 10 (Bloomberg) -- Dubai Group’s debt restructuring may be completed by the end of this year or early next year, said the chief executive officer of Noor Islamic Bank PJSC, one the banks negotiating the deal.
“Negotiations are still under way, but it will be a matter of extending maturities,” Hussain al Qemzi told reporters in Abu Dhabi today. “We don’t have a deadline. It can probably go to the end of the year, or early next year. But still, this is only my hope.”
Dubai Group, controlled by Dubai Holding LLC, is one of several companies in the emirate seeking to alter terms on borrowings after property prices slumped amid the global financial crisis, limiting access to credit markets. Dubai World, the state-owned holding company that’s restructuring about $25 billion of debt, signed a final deal with creditors last month, marking the end of a credit crisis that roiled markets in 2009.
Dubai Group is restructuring $10 billion of liabilities, up from an original estimate of $6 billion, two people with knowledge of the discussions said in April. The company appointed eight banks to represent creditors in two committees in January to help speed up agreement on the restructuring.
Paris-based Natixis SA’s Nexgen unit and Dubai-based Mashreqbank PSC make up the committee of secured lenders, whose loans are backed by assets. Royal Bank of Scotland Group Plc and Emirates NBD PJSC, the United Arab Emirates’ biggest bank, lead the group of partially secured and unsecured lenders.
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