Dubai World tribunal considers new debt restructuring bid
DUBAI, United Arab Emirates (AP) — A tribunal to resolve disputes related to the state-backed Dubai World conglomerate at the center of the emirate’s financial crisis has held its first hearing in an effort to push through the company’s second major debt restructuring.
Tuesday’s largely procedural Dubai World Tribunal hearing sets in motion a process to rework the terms on $14.6 billion of debt.
Dubai World filed its latest proposal after securing support from at least two-thirds of creditors, a threshold that allowed it to turn to the tribunal. It seeks to extend payment timeframes on much of the debt.
The company reworked the terms on $24.9 billion in debt in 2011. That was a key step in resolving Dubai’s financial woes, which came to a head in late 2009 and sent tremors through global markets.