Friday, Nov 25, 2011
-- Firm had been negotiating with creditors
-- Global recession has hit its business
-- Sold some stakes earlier this year to ease debt
(Adds background in paragraphs five, six and eight.)
By Tim Falconer and Nicolas Parasie
Of DOW JONES NEWSWIRES
DUBAI (Zawya Dow Jones)--Dubai International Capital, or DIC, the private equity arm of Dubai Holding, has agreed terms with creditors to restructure $2.4 billion in debt.
"I can confirm the restructuring has been agreed," a DIC spokeswoman told Zawya Dow Jones Friday. She didn't provide any further details regarding the restructuring accord.
DIC is a subsidiary of Dubai Holding, which is owned by the emirate's ruler. Its assets include Almatis, Doncasters, Mauser and Travelodge.
The private equity firm has been negotiating with creditors to reorganise its debt after the global recession took a heavy toll on its business.
A committee of six lenders, including banks such as HSBC Holdings PLC (HBC), Royal Bank of Scotland Group PLC (RBS), Emirates NBD PJSC (EMIRATES.DFM) and Mashreq Bank PSC (MASQ.DFM), has been leading the negotiations with creditors.
Earlier this year DIC sold stakes in Oger Telecom, Ishraq Dubai and KEF Holdings Ltd. to help ease its debt burden.
Government-owned Dubai World reached a final agreement to restructure about $24.9 billion in June.
Dubai Group, also owned by Dubai Holding, is still negotiating terms on a $10 billion debt restructuring.
-By Tim Falconer and Nicolas Parasie, Dow Jones Newswires; +9714 446-1690; tim.falconer@dowjones.com
(END) Dow Jones Newswires
25-11-11 1028GMT
