Lenders to Dubai World have accepted an offer from the conglomerate to settle $14.2 billion in outstanding bank claims, according to a report in a local newspaper.
“Lenders agreed to Dubai World’s final offer to settle its $14.2 billion debt, which stipulates paying back its secured loans in five years and non-secured loans over eight years,” sources familiar with the matter told UAE’s Arabic-language Al Ittihad newspaper.
Sources told the paper the creditors agreed to the main principles of the deal with the final offer to be announced in the morning hours.
Sources confirmed that the conglomerate’s property unit Nakheel continues separate negotiations with banks to reach an agreement, the paper said.
If confirmed, a deal with the holding company’s banks would be the second key settlement after Arabtec signed on to a debt repayment offer with Nakheel, owned by Dubai World.
