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Thu 7 Jan 2010 04:34 PM

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Dubai World says debt revamp plan 'some time away'

UPDATE 1: Firm says report on answering creditors electronically is wrong.

Dubai World says debt revamp plan 'some time away'
(Getty Images)

Dubai World, the state- owned holding company seeking to restructure its debt, moved to quell speculation it could present its restructuring plans to creditors on Thursday, as reported by an Arabic-language newspaper.

"The story is erroneous. We are some time away from presenting a restructuring plan," a spokesman said, adding that the next step in the discussions between the debt-laden company and its creditors would be to agree to a standstill.

A report in Alrroya newspaper quoted an unidentified banking source saying Dubai World would "answer its creditors electronically today (Thursday)".

Bankers said there was increasing speculation about Dubai World communicating some information to creditors, through what is believed to be a secure website.

But details on what this would consist of remained vague and negotiations are likely to be lengthy.

Dubai World, on Nov. 25 when it announced it would seek a debt standstill on $26 billion, staved off a $4.1 billion Islamic bond default by Nakheel after it got a $10 billion bond from Abu Dhabi. Creditors are likely to be presented with a draft standstill agreement prior to any formal request from Dubai World.

A Dubai World spokesperson said in December the company was aiming to have a restructuring plan in place by April.(Reuters)

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