- Debt restructure approved
- 73 per cent of creditors agree to debt restruture
- Deal includes early repayment of $2.9bn of debt
State-backed Dubai World has acquired approval from all its creditors on a $14.6bn debt restructuring, following a court hearing.
Earlier this year, the company entered a tribunal process after it secured the agreement from enough creditors to push forward with plans to restructure its debt.
A total of 73 per cent of Dubai Worlds creditors agreed to a new debt restructuring in January.
The restructured debt package would involve the early repayment of $2.9bn due this September, and the extension of the $10bn due in September 2018 to 2022.
Creditors are expecting to vote on the new proposal on 17 March at the Dubai World Tribunal, and the restructuring process could be concluded by May.
The Dubai World Tribunal was set up in 2009 after the conglomerate stalled on its debt repayments to banks at the height of the global financial crisis and the collapse of Dubais property market.
Decree 57 was introduced then, which ensured Dubai World only need to get approximately 66 per cent of creditors to agree to any material change to amendments to the original loan documentation.
Typically under the terms of the original contract, 100 per cent of creditors would have to approve changes.
The proposed restructuring is likely to feature improved terms such as the pricing.