Dubai World owes over $14bn to its creditors, excluding claims owed to the Dubai Financial Support Fund (DFSF), and the deal will see the company completely restructure all of its $23.5bn financial liabilities.
The Government of Dubai, acting through the DFSF, is planning to convert $8.9bn of debt and claims, representing 38% of the total amount of standalone debt and guarantees of Dubai World, into equity, subordinating its claims to other creditors.
The DFSF has also committed to plans to fund up to put $1.5bn of cash into Dubai World to fund the company’s working capital and interest payment commitment. Some of this will arise from the new debt facilities – non-DFSF creditors will receive 100% principal repayment through the issuance of two tranches of new debt with five and eight year maturities.
Dubai World will continue to focus on improving the performance of its assets to generate value for stakeholders. The deal also includes Includes $4.1bn DFSF funding to repay bond units issued by one of its subsidiaries, Nakheel.
