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Thu 25 Mar 2010 11:21 AM

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$8.9bn of Dubai World debt will be converted to equity

Dubai gov't proposes move to convert 38% of conglomerate's $23.5bn debt.

$8.9bn of Dubai World debt will be converted to equity

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.

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