A Djibouti policeman stands guard during the opening ceremony of Dubai-based port operator DP World’s Doraleh container terminal in Djibouti port in this February 7, 2009 file photo. Dubai World, whose assets include ports operator DP World Ltd and shipyard Drydocks World, was one of many companies in the emirate that delayed debt payments after credit markets froze and asset prices slumped during the global financial crisis.
Bloomberg/Dubai
Dubai World, the state-owned company that roiled global markets in 2009 with a plan to freeze debt payments, paid $2.92bn to creditors under a deal reached in February, two people with knowledge of the matter said.
The payments were made late last month, said the people, asking not to be identified because the information isn’t public. Under the new agreement, which altered the original deal of March 2011, Dubai World pledged early payment of loans due in September, the company said in February.
Dubai World, whose assets include ports operator DP World Ltd and shipyard Drydocks World, was one of many companies in the emirate that delayed debt payments after credit markets froze and asset prices slumped during the global financial crisis. It reached a deal with about 80 creditors in March 2011 to restructure $14.7bn of debt, agreeing to repay $4.4bn in September 2015 and $10.3bn in 2018.
In the new deal, Dubai World extended the 2018 maturities to 2022, increased pricing, introduced amortisation targets and provided additional collateral. A spokesman for Dubai World declined to comment today.
Banks including HSBC Holdings, Standard Chartered, Emirates NBD and Abu Dhabi Commercial Bank were among the biggest creditors to Dubai World. The company repaid part of the $4.4bn originally due this year after selling some assets including its Atlantis, The Palm resort in Dubai and its 50% stake in the Fontainebleau Miami Beach resort.
