Dubai World unit agrees credit facility, debt talks
Drydocks World, unit of Dubai World about to enter into discussions with representatives of its lenders
January 22, 2011 2:54 by Reuters
Drydocks World (DDW), a unit of debt-ridden Dubai World, has agreed with banks on a new $200 million credit facility, and plans to start talks on terms of its core syndicated debt, an official statement said.
“The facility is available for drawing to provide working capital instruments (for example, refund guarantees and performance bonds) to DDW’s trading counterparties in relation to new and existing contracts,” said the Dubai government statement.
“DDW is about to enter into discussions with representatives of its lenders to amend the terms of its core syndicated debt facility as well as for the provision of new long term working capital facilities. This process is likely to be concluded in the coming months,” the statement said.
Dubai World, the Gulf emirate’s flagship conglomerate which has restructured $25 billion in debt, expects recovery in its critical businesses such as ports, dry docks and free trade zones, a Dubai government statement said on Monday.
(Reporting by Firouz Sedarat; Editing by Toby Chopra)