Wednesday, Apr 04, 2012
DUBAI (Zawya Dow Jones)--Dubai International Capital has received full support from creditors for its $2.4 billion debt restructuring, which is expected to be signed by the end of the month, three people involved in the talks said Wednesday.
DIC, a private equity arm of Dubai Holding, agreed with creditors on the terms of the restructuring late last year, but encountered an obstacle in the early months of this year when the Dubai Government suddenly withdrew a $150 million line of credit.
Since then, however, Dubai Holding has agreed to subordinate a small amount of debt owed to it by DIC in favor of the company's external creditors, helping smooth along a final agreement, one of the people said.
"Everyone pretty much signed up or at least agreed," a second person said. "It's a matter of formalities now."
One of the people involved in the discussions said that the deal was likely to be in place by the end of April, but that there have been "so many twists and turns along the way that I hesitate to put my finger on the calendar."
-By Asa Fitch and Nicolas Parasie, Dow Jones Newswires, +971 4 446-1685, asa.fitch@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
04-04-12 1306GMT
