By Andrew White
Dubai gov't proposes move to convert 38% of conglomerate's $23.5bn debt.
Dubai Government has announced it will convert more than a third of Dubai World’s $23.5bn debt into equity.
Earlier on Thursday it was announced that Dubai World would receive $1.5bn in new funding from the Dubai Government, as part of a $9.5bn debt restructuring plan.
However, the government is proposing $8.9bn of the current debt – equivalent to 38 percent – into equity.
In a statement, the company said this would mean Dubai Government “subordinating its claims to other creditors”.
In addition, the statement said that non-DFSF creditors would receive 100 percent principal repayment “through the issuance of two tranches of new debt with five and eight year maturities”.
for the official statement regarding Dubai World.