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DIC to replace CEO; core banks agree to debt plan

Lenders signing off on company’s debt restructuring

December 16, 2010 4:13 by

Dubai Holding’s private equity arm DIC will replace its chief executive as major lenders sign off on the company’s debt restructuring plan for a $1.25 billion loan, sources said on Thursday.

Dubai International Capital’s chief investment officer David Smoot will replace Anand Krishnan as CEO, two sources familiar with the matter told Reuters.

One of the sources said the core committee of lenders agreed to the offer of two percent interest and repayment over six years on a $1.25 billion loan that was due in June after negotiations over the terms of the debt restructuring.

DIC had originally extended the loan to Sept. 30 and then asked for a second extension to November 30.

DIC, controlled by Dubai holding which is owned by the ruler of Dubai, has around $2.6 billion in total debt.

A representative of the company did not immediately comment.

UK bank HSBC and local lender Emirates NBD are co-chairing the committee leading the talks between creditors and the company.

Investment bank Lazard is advising DIC.

HSBC was bookrunner and agent for DIC’s $1.25 billion June loan, with Bank Of Tokyo Mitsubishi-UFG, Emirates Bank, Emirates NBD, Lloyds and Sumitomo Mitsui as mandatory arrangers for the loan.
Reporting by Rachna Uppal and Amran Abocar; Editing by XXX

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