By Jo Anne Bladd
Deutsche Bank buys debt held by the only creditor to have held off approving the deal - report
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.