Dubai’s Supreme Fiscal Committee is no longer involved in talks to help Dubai Group, the financial services arm of Dubai Holding, to restructure around $10bn of debts.
The Supreme Fiscal Committee, a Dubai government body, has previously been involved in providing financial support to other debt-laden government-owned firms. Creditors to Dubai Group had been asking for around $2bn in financial support from the government as part of a deal to restructure the firm’s debts.
Dubai Group has since informed the creditors that the Supreme Fiscal Committee is no longer involved in the negotiations
Dubai Group has since informed the creditors that the Supreme Fiscal Committee is no longer involved in the negotiations. “Dubai Group is now proposing a deal that will push the debts out by between five to 10 years, but there is no government support,” says one banker in Dubai involved in the talks.
Dubai Group is one of several parts of Dubai Holding that have been involved in debt restructuring talks. Last year Dubai International Capital agreed a restructuring deal for $2.7bn of debt. Another subsidiary, Dubai Holding Commercial Operations Group repaid a $500m bond in late January, a year after getting banks to agree to refinance a $555m loan with a new five-year facility.
In March 2010, during the restructuring of Dubai World and Nakheel, the Supreme Fiscal Committee agreed to provide $9.5bn to help agree a deal with creditors. A large part of that was funded by a $20bn bailout provided by Abu Dhabi, and two banks controlled by the Abu Dhabi government.