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Dubai World meets six largest lenders: report

Press Trust of India  |  London 

The six largest lenders to the debt-ridden Dubai World have started discussions with the government-owned conglomerate prior to the firm's creditors' meeting scheduled for December 21, says a media report.

The British daily The Times has reported that the six biggest lending banks -- HSBC, Royal Bank of Scotland, Lloyds Banking Group, Standard Chartered, Emirates National Bank of Dubai and Abu Dhabi Commercial Bank -— met Dubai World's advisors NM Rothschild and Deloitte, yesterday.

The Emirates National Bank of Dubai and Abu Dhabi Commercial Bank are the local banks, while remaining four are British bankers.

"Dubai World's six biggest lending banks have begun talks with the ailing state-owned group before a creditors' meeting scheduled for December 21," according to the report.

The daily noted that the banks tried to ascertain whether Dubai World would make interest payments due on the bonds of Nakheel, its property subsidiary, next Monday.

Late November, Dubai World sought at a six-month freeze on its debt repayment schedule for $59 billion loans, an announcement which had send shock waves across the world markets and sparked fears of a fresh financial crisis. Last week, Dubai World said it would be looking to restructure debts worth $26 billion on a priority basis.

"The leading banks, which are forming a steering committee to represent all 90 of Dubai World's bank lenders, also asked for detailed financial information to help them to revalue the company in the event of a default," the report said.

First Published: Tue, December 08 2009. 21:09 IST