Dubai World in ‘new phase of growth’, says chairman

Debt-hit firm has bright future based on solid financials, says Sheikh Ahmed Bin Saeed Al Maktoum
Dubai World in ‘new phase of growth’, says chairman
Sheikh Ahmed replaced Sultan Ahmed bin Sulayem as Dubai World chairman in December
By Joanne Bladd
Wed 30 Mar 2011 09:56 AM

Dubai
World, the state-owned conglomerate that has restructured $24.9bn in debt, is moving
into a new phase of growth, chairman Sheikh Ahmed Bin Saeed Al Maktoum said.

“What’s past is past,” he told a meeting of about 600
managers from its business units in Dubai. “Dubai World has now moved into a
new phase of growth. We look forward to a brighter future based on solid
financials.”

Dubai
World, which includes DP World, Nakheel and Drydocks World among its units, last
week signed a final agreement with its 80 creditors to restructure
almost $25bn in debt.

Under the terms of the two-tranche debt repayment plan,
creditors will receive $4.4bn in five years while the second tranche will
involve $10.3bn over eight years at a fixed interest rate of 2.4 percent.

Dubai World sent global markets reeling in 2009 when it said
it was unable to meet its debt obligations.

Dubai World said in July it is prepared to sell prized
assets including previously ringfenced ports firm DP World in a bid to raise as
much as $19.4bn to repay creditors.

The repayment of the initial $4.4bn, five-year debt tranche
would be financed by its Istithmar World portfolio and its Infinity investment
- two segments that were ringfenced from the conglomerate's debt proposal
agreed by a core group of bankers in May.

Sheikh
Ahmed replaced Sultan Ahmed bin Sulayem as Dubai World chairman in December.

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