Posted by Neil King
The Dubai World investment conglomerate has achieved 100 per cent support for its $25 billion restructuring plan after the only creditor to have withheld approval was bought out, it has been reported.
According to the Financial Times, Aurelius Capital Management, the only group not to agree to the plan, sold its $5 million share of Dubai World's outstanding liabilities to Deutsche Bank.
Under the restructuring plan, bank maturities are to be extended for five to eight years at sub-commercial interest rates in order to give Dubai World more time to sell assets.
The FT commented that by reaching full agreement, Dubai World can now avoid the more costly and time-consuming route of pushing the plan through a special tribunal.
Specific documents for the $24.9bn restructuring are currently being prepared for banks to sign soon.
The news comes after a recent study compiled by the World Economic Forum ranked the UAE 25th overall in terms of competitiveness out of 139 economies in the Arab region and claimed that the country is currently at an "advanced, innovation-driven stage of development".