Company in talks with banks over Nakheel and Limitless loans
Dubai World has started restructuring talks on $26bn of debt held by subsidiaries such as Nakheel and Limitless, according to a statement on the Nasdaq Dubai on 1 December.
According to the statement, the conglomerate is not restructuring the debt of DP World, Istithmar World, and the Jebel Ali Free Zone. The statement described the three companies as being “on a stable financial footing”.
“Following a detailed review of the group’s liquidity and capital structure, Dubai World has concluded that it should immediately consider alternatives in respect of the debt obligations of certain entities within the group,” according to the statement.
The company said it has started talks with banks and it has requested the holders of Nakheel’s $6bn debt to appoint a representative.
Dubai World will carry out the restructuring in “an equitable way for the overall benefit of all stakeholders”.
US-based investment bank Moelis & Company and the UK’s Rothschild are advising Dubai World on the restructuring.