Dubai World considers offering 60 per cent to creditors

Dubai World may offer creditors 60 per cent of the money they are owed over seven years reports Zawya Dow Jones.

According to sources familiar with the matter, the offer will be backed by a Dubai government sovereign guarantee when it is presented to creditors in April.

Dubai World announced in late November last year that it would seek a six-month standstill on its debts. The company met in December with 90 creditors but there have been few details on the restructuring.

An alternative proposal involves creditors receiving full payment, including 40 per cent of their Dubai World debt in the form of assets in Dubai’s World’s property development company, Nakheel, with no government guarantee over the same seven-year period.