29 Nov 2009,
DUBAI: Debt-ridden Dubai World is mulling over four options
to repay its $ 59 billion credit and liabilities, media here
reported.
One of the options being considered by advisers to the conglomerate,
is the on-schedule (December 14) repayment of the $ 4 billion
payment of a sukuk (Islamic bonds) from Nakheel(real estate arm),
the National said.
Dubai World seeking an extension to repay its multi-billion debt
till May 2010 has sent world stocks on a tailspin and has raised
alarms in the financial world.
"If Dubai World pays back the sukuk (the islamic bonds), it would
solve a problem for the company and its bondholders, and leave open
the option of rescheduling bank debt and other liabilities, including
bills owed to international contractors," the daily said.
The other options being considered include a scheme to offer bond
holders 80 per cent redemption of the value of their holdings, with
similar offer being made to bankers.
Alternatively, Dubai World may move forward with the plan to seek a
general "debt holiday" under the terms of last week's standstill proposal,
by which payments would be frozen until May 30 next year with
a view to negotiating a rescheduling of all its debts.
Lastly, Dubai World might embark on a general liquidation
of assets in response to legal action by creditors. "But this
is thought to be a remote possibility, as it is likely to impair
the value of Dubai World assets, leaving everyone worse off," the report said.
Source:PTI
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