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Dubai Holding agrees $555 mln refinancing deal
Converts revolving credit facility into 5-yr loan; Had missed three repayment deadlines.
January 1, 2011 1:02 by Reuters
Conglomerate Dubai Holding’s main unit has reached a deal with lenders to convert a $555 million revolving credit facility into a five-year term loan, the company said in a statement late on Thursday.
Dubai Holding’s loss-making hospitality and property arm, Dubai Holding Commercial Operations Group (DHCOG), had extended for a third time the loan due Nov. 30, to Dec. 30.
It stalled on repayment in July and September, reinforcing doubts over Dubai’s ability to resolve its debt troubles.
“Dubai Holding Commercial Operations Group (DHCOG) LLC, along with Citibank, Royal Bank of Scotland and Standard Chartered Bank are pleased to announce that a consensual agreement has been reached,” the statement said.
DHCOG, a unit of the conglomerate owned by the Gulf Arab emirate’s ruler, took a big hit from its exposure to Dubai’s property crash and said in June it might sell assets to deal with its debt after posting a $6.2 billion loss for 2009.
State-owned conglomerate Dubai World sent global markets reeling last year when it requested a standstill on almost $25 billion of debt. The company secured unanimous approval for its restructuring plan in under a year.
Financial services firm Dubai Group, also owned by Dubai Holding, had missed two payments on separate loans in recent weeks, sources said in November.
(Reporting by Martina Fuchs; Editing by David Hulmes)