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Wed 27 Oct 2010 09:56 AM

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Dubai World wins full support for $25bn debt plan

Deutsche Bank buys debt held by the only creditor to have held off approving the deal - report

Dubai World wins full support for $25bn debt plan
Dubai World has secured support from all its creditors for a $25bn debt restructuring

State-owned Dubai World

has secured support from all its creditors for a $25bn debt restructuring plan, a spokesman said on Wednesday, helping

to avoid a drawn-out battle with a special tribunal.

The spokesman did not provide further details.

The Financial Times reported that Deutsche Bank had bought the debt held by the only creditor to have held off

approving the deal, citing people familiar with the situation.

U.S.-based distressed debt fund Aurelius Capital Management

bought $5m of debt in the secondary market, but missed

the Sept. 9 deadline to vote on the deal.

Dubai World can now avoid having to go through the special

tribunal set up to hear creditor claims, a process lawyers had

said could have pushed back the restructuring for an

indeterminate amount of time.

Dubai World announced last month that it had reached

agreement with 99 percent of its creditors by value.

The restructuring agreement is one of the first major

milestones to resolve the debt headache which has plagued the

Emirate since last year.

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