Dubai at center of new debt concerns
By Adam Schreck |
May 28, 2010, Friday
|
Print Edition
Print Edition
AN investment company controlled by Dubai's ruler yesterday said it is seeking a three-month extension on repaying some of its debt, raising new concerns about the depth of the city-state's credit woes.
Dubai International Capital said it and a coordinating committee of some of its banks have asked lenders for an extension "of certain maturities" until September 30.
"The extension period would allow the implementation of a consensual longer term plan that would enable DIC to maximize the value of its business for the benefit of all its stakeholders," the company said.
DIC did not provide details of the debt involved. It has a US$1.25 billion loan due in June. The announcement, released at the end of the local working week, came seven days after another indebted government-linked company, Dubai World, said it had won support for its US$23.5 billion restructuring plan from leading lenders. Dubai officials have since outlined the need for further financial reforms.
DIC is part of a holding company owned by Dubai's ruler, Sheik Mohammed bin Rashid Al Maktoum.
DIC's holdings include British hotel chain Travelodge, medical imaging equipment maker Alliance Medical and precision engineering company Doncasters Group. It also has stakes in Sony Corp and Airbus parent company EADS NV.
The International Monetary Fund estimates the emirate of Dubai is shouldering as much as US$109 billion in debt spread among government accounts and numerous state-linked companies.
Dubai International Capital said it and a coordinating committee of some of its banks have asked lenders for an extension "of certain maturities" until September 30.
"The extension period would allow the implementation of a consensual longer term plan that would enable DIC to maximize the value of its business for the benefit of all its stakeholders," the company said.
DIC did not provide details of the debt involved. It has a US$1.25 billion loan due in June. The announcement, released at the end of the local working week, came seven days after another indebted government-linked company, Dubai World, said it had won support for its US$23.5 billion restructuring plan from leading lenders. Dubai officials have since outlined the need for further financial reforms.
DIC is part of a holding company owned by Dubai's ruler, Sheik Mohammed bin Rashid Al Maktoum.
DIC's holdings include British hotel chain Travelodge, medical imaging equipment maker Alliance Medical and precision engineering company Doncasters Group. It also has stakes in Sony Corp and Airbus parent company EADS NV.
The International Monetary Fund estimates the emirate of Dubai is shouldering as much as US$109 billion in debt spread among government accounts and numerous state-linked companies.
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