Dubai International Capital (DIC), the private equity arm of Dubai Holding, has sealed a deal with creditors to restructure around US$2.5bn of debt.
Of the total sum, creditors have agreed that around US$2.15bn of the debt will be extended for five years, while they will also receive a two percent cash interest coupon on the new facility.
The remaining US$350m of debt will be extended for three years at the same interest rate, the company said in a statement.
“Although we are under no pressure to sell assets, we have been able to make a number of profitable exits in recent months demonstrating the quality of our investments and our ability to find buyers in current market conditions,” said DIC CEO David Smoot.
“Despite the challenging macroeconomic environment the portfolio is well-positioned to navigate current markets with less leverage, better liquidity and long-term financing, reflecting significant future value potential.”
DIC has recently exited several of its investments, including Sharjah-based KEF Holdings and hotel company Ishraq Dubai.
It still has stakes in British firms Travelodge, Alliance Medical and Doncasters Group, as well as Germany-based Almatis and Mauser.
DIC also announced that a new board had been appointed, with Fadel Al Ali, chairman of Dubai Holding Commercial Operations Group (DHCOG0 – which runs the Jumeirah Group and TECOM businesses – taking over as chairman.
New board members include Aidan Birkett – the former Deloitte official who successfully led the Dubai World restructuring – Christopher Rowlands and Abdullah Sharafi.
Follow us on
