A conglomerate will look into Dubai World’s plan to restructure its $26 billion debt pile to creditors this week. The firm has been in talks with its creditors about how to repay its commitments with an informal bank panel, which represents 97 creditors to the state-owned conglomerate in Dubai. The debt is linked mainly to Dubai World's property units, Nakheel and Limitless World. The company ring fenced other key assets, such as ports operator DP World, from the restructuring. Talks have tested the tolerance and positions of both sides with early reports floated about a loss, as large as 40 percent, while bankers have countered with demands for nothing less than full repayment. A final proposal on the debt could involve tranches with different repayment profiles, one with a repayment over three to five years with the principal discounted, and another with repayment over seven to nine years with no discount. The eventual proposal will centre on the extension of maturities with low or zero interest, and the option of an early exit at a discount or eventual repayment over a longer period of time. The quality of the offer rests with Abu Dhabi, Dubai's wealthier and larger neighbour, which bailed the emirate out late last year.
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