Creditors put Dubai World debt up for sale before restructuring

Discussion in 'Wall St. News' started by ASusilovic, Jan 18, 2010.

  1. Bank creditors to Dubai World that are owed billions of dollars are trying to reduce their exposure to the debt-laden conglomerate by offering their loans for sale ahead of an expected restructuring of the company’s $22bn of debt.

    Last week, debt traders told potential investors that there was a seller seeking to offload about $100m of loans.

    This would be the first large trade in the $5.5bn loan facility at Dubai World’s parent, of which $2.1bn falls due for repayment in June, according to Bloomberg data.

    Investors and traders say the debt could be sold at 70 per cent of face value.

    Weren't HSBC and Standard Chartered highly involved in Dubai World ?