Dubai Group sets up bank panel for debt talks

Thursday, 11 November 2010 22:26 - - {{hitsCtrl.values.hits}}

Dubai (Reuters): Dubai Group, a unit of conglomerate Dubai Holding, is setting up a committee of banks to discuss its debt commitments, and said on Thursday it will continue to service its debts.

“These discussions are making good progress and Dubai Group is confident of a positive outcome that is beneficial to all stakeholders,” said a spokesman for the group.

Dubai Group has a $1.5 billion murabaha facility due in August 2011 in which 25 banks have participated.

Dubai Group’s parent, Dubai Holding, is a conglomerate owned by the emirate’s ruler. Dubai Holding’’s other units, including Dubai International Capital (DIC) and Dubai Holding Commercial Operations Group (DHCOG) raised concerns with investors earlier this year when they sought delays for credit obligations.

Dubai-related entities have been in the spotlight since state-owned conglomerate Dubai World shocked global markets over the Eid Al Adha holidays one year ago when it revealed it was unable to meet almost $25 billion in debt obligations.

Dubai World avoided default by a cash injection from neighbouring emirate Abu Dhabi, and its subsequent restructuring process has been seen as a litmus test for future restructurings among Dubai-related entities.