Dubai World Said to Present Loan Restructuring Plan in March

Dubai World will present a proposal to creditors in March to restructure about $22 billion of debt after its advisers complete valuing the assets of the state- owned company, a person close to the Dubai government said, BusinessWeek reported. The final proposal will be made after consultations with the Abu Dhabi government and the United Arab Emirates’ central bank, said the official today, who declined to be identified because the process is private. The central bank, Abu Dhabi’s government and two lenders of the emirate lent $20 billion last year to Dubai’s support fund to help state-owned companies during the credit crisis. Dubai World, one of Dubai’s three main state-owned business groups, said Nov. 25 it would seek to delay repaying debt until at least May 30. The announcement triggered the biggest plunge in developing-nation stocks and steepest increase in emerging- market bond yields over U.S. Treasuries in four weeks, while the cost to protect against a default by Dubai doubled. Read more.