Posted by Neil King
Dubai World has claimed it has over 99 per cent support for its plans to restructure about $24.9 billion of debt.
Yesterday (September 9th) marked the expiry of a deadline for senior creditors of the government-backed investment conglomerate to accept a lock up agreement regarding the restructuring proposals.
In a statement, the Dubai government said it was pleased with the outcome of the negotiations, noting that the agreement "formalises a strong consensus around a fair and balanced restructuring proposal," Dow Jones Newswires reported.
Dubai World also stated that the widespread support would allow the restructuring proposal to be closed in the coming weeks.
The plans include selling off assets over five and eight years to raise more than $19 billion to pay off creditors.
The government statement claimed the new consensus on restructuring would put Dubai World on a "sound and stable financial footing whilst enabling it to realise the full potential of its underlying businesses".