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Thu 8 Jul 2010 09:09 AM

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Dubai Holding extends $555m credit facility

'Extension is required to facilitate the finalisation of the documentation to renew the facility.'

Dubai Holding extends $555m credit facility
(Getty Images)

Indebted Dubai Holding's main unit said on Thursday that its lenders had agreed to extend a $555 million revolving credit facility for two months.

The extension, granted on commercial terms, comes after Dubai Holdings Commercial Operations Group (DHCOG) reported a $6.2 billion 2009 loss in June.

DHCOG is a unit of Dubai Holding, the conglomerate owned by the emirate's ruler that belongs to the matrix of firms commonly known as Dubai Inc., which was badly battered by the financial crisis and remains in negotiations with creditors.

Concerns about the overall debt burden of Dubai's state-linked companies mounted after Dubai announced a standstill on repaying $26 billion in debt as it restructured conglomerate Dubai World.

It unveiled a $9.5 billion rescue plan for the firm in March, winning backing from its core group of lenders. The proposal has yet to be approved by the rest of Dubai World's creditors, some 90 banks. (Reuters)

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