Dubai Group is in talks to restructure $10 billion in debts with creditors.
The company aims to restructure $6bn of bank debt alongside $4bn owed to other investors, according to a report by Bloomberg. This is $4bn higher than previous estimates. Discussions are still at an early stage and a final agreement is still several months away.
The company is among several that were forced to restructure their loans after asset values plummeted and the credit market froze. Dubai World, one of the main three state-owned holding companies, announced in November 2009 that it was seeking the restructuring of about $25bn of its debt.
Dubai Group is a unit of Dubai Holding – the investment vehicle owned by the emirate’s ruler Sheikh Mohammed bin Rashid al-Maktoum. It focuses on insurance, banking and investment. In January, it said that it had set up a number of committees in order to speed up its restructuring efforts.
The report is expected to cast gloom over more positive announcements reflecting improved investor sentiment in the emirate.