Bank creditors to Dubai World have accepted an offer from the indebted conglomerate to settle $14.2 billion in outstanding bank claims, according to a report in a UAE newspaper on Thursday.
Lenders agreed to Dubai World's final offer to settle its $14.2 billion debt, which stipulates paying back its secured loans in five years and non-secured loans over eight years, sources familiar with the matter told UAE's Arabic-language Al Ittihad newspaper.
Sources told the paper the creditors agreed to the main principles of the deal with the final offer to be announced in the morning hours.
Sources confirmed that the conglomerate's property unit Nakheel continues separate negotiations with banks to reach an agreement, the paper said.
If confirmed, a deal with the holding company's banks would be the second key settlement after Arabtec , the United Arab Emirates largest builder by market value, signed on to a debt repayment offer with Nakheel , owned by Dubai World.
Dubai said in November it would ask creditors to delay repayment on $26 billion in debt linked to its flagship conglomerate Dubai World , sending shockwaves through markets.
(Reporting by Tamara Walid, writing by Thomas Atkins)