State-owned conglomerate needs to fund a $4.5bn debt repayment in 2015 - report
Dubai World creditors have urged the state-owned conglomerate to sell off some of its high-profile assets, including the Atlantis Hotel on Palm Jumeirah in Dubai, the CityCenter casino complex on the Las Vegas strip and the Mandarin Oriental hotel in New York, it has been reported.
Dubai World restructured its debts with around 90 lenders and creditors in 2011 and is in the process of raising funds for a $4.5bn repayment due in 2015.
At a meeting of creditors last month in Dubai, the state-owned firm was pushed to speed the sale of its assets in order to meet its debt requirements, the Financial Times reported.
At a meeting last month in Dubai, lenders expressed concern that Dubai World, one of the investment arms of the Dubai government, was not moving quickly enough to raise funds to pay a $4.5 billion debt repayment due in 2015, the Financial Times reports.
"Banks were saying there are still lots of assets to sell to meet the deadline," one of the attendees told the FT.
Some speculated Dubai World was procrastinating in order to allow it to renegotiate its restructuring agreement under better terms.
The list of high profile assets the company could sell to finance its debt repayments include Canadian entertainment company Cirque du Soleil, DP World port operator, the Atlantis Hotel on Palm Jumeirah in Dubai, the CityCenter mega casino and hotel complex on the Las Vegas strip and the Mandarin Oriental hotel in New York.
"Dubai World is behind in terms of the plan for realisation of assets, but they've still got two years," another creditor was quoted as saying by the FT.