Dubai commits 9.5 bln dlrs to troubled Dubai World
DUBAI: The Dubai government said on Thursday it has committed 9.5 billion dollars in aid to its troubled Dubai World conglomerate, which has been negotiating the restructuring of 22 billion dollars of debt.
The government will support the group's proposals to restructure its liabilities "with significant financial resources," the head of the emirate's Supreme Fiscal Council, Sheikh Ahmed bin Saeed al-Maktoum said in a statement.
These resources include a "commitment to fund up to 9.5 billion dollars in new funding over the business plan period," he said.
The statement said the proposals to creditors would be announced later on Thursday.
Dubai World said on Thursday it has proposed to pay its full debt to creditors through the issuance of two tranches of new debt maturing in five and eight years.
Creditors, apart from the government's financial support fund which has pumped cash into the troubled group, "will receive 100 percent principal repayment through the issuance of two tranches of new debt with five and eight years maturities," the company said in a statement.