Troubled state conglomerate Dubai World has invited creditors to a July 22 meeting to offer details on its proposed debt restructuring, the first such session to include all lenders since December last year.
Three sources from among the group's 80 creditors told Reuters they had received the invitation via the coordinating committee of seven banks that hold 60 percent of Dubai World's $14.4 billion in bank debt.
The flagship state conglomerate, which shocked investors in November with news it could not pay its debts, will try to secure wider backing from the meeting for an outline restructuring deal struck with a coordinating committee of lenders in May.
It said at the time that it would set a meeting with remaining creditors in June.
Dubai World reached an agreement with its core lenders in May with a plan that would see the banks get their money back in two tranches with five- and eight-year maturities.
Ahead of the crisis, most of Dubai World's debts were due to be repaid by the end of 2011.
Dubai World requires support from lenders representing two thirds of its debt for the deal to go through, but is hoping to gain full backing in order to avoid court proceedings and possible delay the restructuring process.
We expect some banks to be grumpy and to complain about the pricing, but then again a majority will likely agree as the alternative of letting the deal collapse is moving into unchartered territory, said one of the sources.
Overall we don't expect anything major to come out of this meeting, we see this as rubber stamping of the deal, the source added.
In addition, Dubai World will organize workshops in Hong Kong, London and Dubai to allow bankers to ask the group's legal and financial advisers questions about the terms of the debt proposal.
Banks unhappy with the deal can file a claim with a special tribunal set up for the purpose, but legal experts have said they may be reluctant to pursue legal action in the absence of any precedents.
After the meeting Dubai World's creditors will present the details to their own respective risk committees and approve or reject the deal within three to four weeks, said a second source.
A third source said a finalized deal could take a very long time.
The process could take several more months after this meeting. There won't be any resolution yet. The purpose is giving information, the source said.
Dubai World declined to comment.
(Reporting by Nicolas Parasie and Rachna Uppal; Editing by Andrew Callus)