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Dubai Holding Confirms Final Agreement Reached with DIC lenders

Dubai Holding Confirms Final Agreement Reached with DIC lenders

Board of Directors to be appointed. Fadel Al Ali to be Chairman

April 5, 2012 2:07 by

Dubai Holding announced today that Dubai International Capital (‘DIC’), its private equity investment arm, has reached a final agreement with its lenders regarding the restructuring of approximately US$2.5 billion of liabilities.

Under the terms relating to approximately $2.15bn of liabilities, creditors will extend their debt for five years and receive a two per cent cash interest coupon on the restructured facilities. An agreement has also been reached in relation to a facility of approximately $350m of liabilities, where creditors will extend their debt for three years at the unchanged contractual rate of interest.

Ahmed Bin Byat, Chief Executive Officer, Dubai Holding, said: “This agreement is an important landmark for Dubai Holding. The successful restructuring is a result of the significant commitment demonstrated by all stakeholders and Dubai Holding acknowledges their role in achieving this agreement. The restructuring puts DIC on a sound financial footing.”

David Smoot, Chief Executive Officer, DIC, said: “This successful refinancing will allow for the implementation of the management team’s long-term business plan to maximise the value of the Company’s portfolio of assets for the benefit of all stakeholders. Although we are under no pressure to sell assets, we have been able to make a number of profitable exits in recent months demonstrating the quality of our investments and our ability to find buyers in current market conditions. Despite the challenging macroeconomic environment the portfolio is well-positioned to navigate current markets with less leverage, better liquidity and long-term financing, reflecting significant future value potential.”

Dubai Holding also announced that it intends to appoint a new Board of Directors for DIC. Fadel Al Ali, Executive Chairman of Dubai Holding Commercial Operations Group, has been named as the Chairman. Other nominated board members include: David Smoot, CEO; and three independent directors; Aidan Birkett, Christopher Rowlands and Abdullah Sharafi.

Rick Pudner, CEO, Emirates NBD said:“This debt restructuring represents another step in Dubai’s continued march in the right direction. The fact this restructuring was agreed with full lender consent reflected the continued support provided by Dubai Holding throughout the process and, also the unwavering commitment of the lenders towards achieving a consensual solution in the interest of all stakeholders.

“Strong fundamental economic growth story coupled with willingness and ability to address debt refinancing requirements in a timely and viable manner are strong differentiating factors for Dubai in the current global economic scenario driving investor confidence and positive sentiment around the Dubai story. This is clearly reflected in the recent tightening of Dubai CDS and we believe that it will give further traction to the growing positive momentum.” Mr. Bin Byat concluded: “Dubai Holding will continue to focus on reaching a consensual agreement with Dubai Group lenders and remains confident that the Dubai Group restructuring will also reach a successful agreement.”-India Court Rejects Appeals in Telecom Licence Dispute

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