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Wed 17 Mar 2010 11:37 AM

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Dubai World may offer seven-year debt repayment - TV

Company may offer to pay creditiors same interest rate as London interbank offered rate.

Dubai World may offer seven-year debt repayment - TV
DUBAI WORLD: The state-owned holding company IS restructuring $26bn in debt. (Getty Images)

Dubai World is likely to propose to creditors a plan to rollover its debt for seven years and to pay the same interest rate as the London interbank offered rate, Al Arabiya TV channel said on Wednesday citing unidentified bankers, according to a newswire Bloomberg report. Dubai World will announce a “fair” proposal “very soon,” Sheikh Ahmed Bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee, said in an interview on Tuesday.

“At the end of the day we need everybody,” said Sheikh Ahmed, also chairman of government-owned airline Emirates. “They need us also. We have projects that will be started in the near future for the long term.”

Dubai isn’t likely to need more central bank aid, UAE central bank Governor Sultan bin Nasser al-Suwaidi said in an interview earlier this week. Dubai World, one of the emirate’s three main state-owned business groups, said Nov. 25 it would seek to delay repaying debt until at least May 30.

The state-owned holding company restructuring $26bn in debt, may offer creditors a 20 percent haircut and a 10-year extension on maturities, JPMorgan Chase said early this month.

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