* Lenders agree extension of maturity dates
* Deal clears last hangover from Dubai financial crisis
* Emirate's economy enjoys boom in past year
DUBAI, Jan 23 Financial services conglomerate
Dubai Group has reached a final deal with creditors on
restructuring $10 billion of debt, resolving the last major
hangover from the emirate's financial crisis, its parent company
confirmed on Thursday.
Lenders agreed to restructure about $6 billion of bank
facilities while a further $4 billion of debt will be repaid
after bank creditors are satisfied, Dubai Holding,
the investment vehicle of Dubai's ruler, said in a statement.
The statement confirmed a Jan. 16 Reuters report, which
quoted banking sources as saying the deal had been done.
Lenders to Dubai Group agreed to extend maturity dates to
the end of 2016 for secured facilities and to the end of 2024
for partially secured and unsecured facilities. This is intended
to buy time for Dubai Group's assets to recover in value so that
some can be sold to meet its obligations.
Dubai Group was one of a number of Dubai state-linked
entities which borrowed heavily from banks to fund an
acquisitions spree during the boom years of 2006-8.
But as credit markets dried up following the global financial
crisis and a crash of Dubai's real estate market, they found
themselves unable to manage their obligations and were forced to
renegotiate tens of billions of dollars of debt.
Dubai Group's deal concluded more than three years of
negotiations over its debt pile. Its lenders include big Western
banks such as France's Natixis and top Gulf
institutions such as Dubai's Emirates NBD.
A number of creditors sought a remedy through the courts - a
rare occurrence in the Gulf - which resulted in some, including
Royal Bank of Scotland and Commerzbank,
accepting 18.5 cents on the dollar to exit the restructuring
Over the past year, Dubai's real estate market has recovered
dramatically and its economy has boomed, increasing the chances
for the restructuring plan to proceed smoothly in coming years.
Dubai Holding also announced on Thursday the appointment of
a new board of directors for Dubai Group. Ahmed Al Qassim,
formerly director of investment banking at Emirates NBD Capital,
was appointed chief executive and board member; Aidan Birkett,
Michael McLoughlin and Abdullah Sharafi were made independent