Dubai World says debt revamp plan some time away

  @ibtimes on January 07 2010 10:45 AM

DUBAI - Dubai World, the state- owned holding company seeking to restructure its debt, moved to quell speculation it could present its restructuring plans to creditors on Thursday, as reported by an Arabic-language newspaper.

The story is erroneous. We are some time away from presenting a restructuring plan, a spokesman said, adding that the next step in the discussions between the debt-laden company and its creditors would be to agree to a standstill.

Dubai World disappointed creditors last month by making little progress in its intention to request a formal standstill but said it would pitch a proposal in January.

A report in Alrroya newspaper quoted an unidentified banking source saying Dubai World would answer its creditors electronically today (Thursday).

Bankers said there was increasing speculation about Dubai World communicating some information to creditors, through what is believed to be a secure website.

But details on what this would consist of remained vague and negotiations are likely to be lengthy.

Dubai World, which rocked global markets on November 25 when it announced it would seek a debt standstill on $26 billion, staved off a $4.1 billion Islamic bond default by Nakheel after it got a $10 billion bailout from Abu Dhabi. Creditors are likely to be presented with a draft standstill agreement prior to any formal request from Dubai World. A Dubai World spokesperson said in December the company was aiming to have a restructuring plan in place by April.

(Reporting by Rachna Uppal; Editing by Thomas Atkins and David Holmes)

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