US debt fund is only creditor to decline Dubai World restructuring deal

13 September 2010

Fund could still agree to the deal

US-based distressed debt fund Aurelius Capital Management is the only creditor which did not agree to Dubai World’s $24.9bn debt restructuring deal, according to an article published in the Financial Times on 13 September. 

The state-owned conglomerate received approval from over 99 per cent of creditor banks to restructure its debt, with final closure expected “in the coming weeks”, according to a statement published by Dubai World on 10 September.

Aurelius could still approve the deal, but will not be entitled to the incentive fees paid to creditors that complied with the 9 September deadline, according to the Financial Times article.

The US fund had bought $5m of debt in the secondary market.

The agreement required the approval of lenders representing two thirds of the value of loans. It has been overseen by a seven-member co-ordinating comittee representing the 100-odd financial creditors to Dubai World.   

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