Dubai International Capital asks banks for three month debt extension

27 May 2010

Dubai Holding subsidiary asks for extension on $1.25bn loan due 27 June

Dubai International Capital (DIC) has asked its lenders for a three month extension on a $1.25bn loan due to be repaid on 27 June.

The company and its advisers made the request to lenders for an extension until 30 September on 27 May.

A source close to DIC says the extension request includes the $1.25bn loan and a number of other smaller loans also due around the same time.

A statement from the company said, “The extension period would allow the implementation of a consensual longer term plan that would enable DIC to maximise the value of its business for the benefit of all its stakeholders.”

DIC, is an investment subsidiary of Dubai Holding, has appointed Lazards to act as adviser to it on a debt restructuring. Dubai Holding and its subsidiaries, including Dubai Group, have already appointed several financial advisers to work on the potential restructuring of several billion dollars of debt.

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