DUBAI, (Reuters) – Conglomerate Dubai Holding’s main unit said it has extended a $555 million loan due Nov. 30 to Dec. 30, the third extension of the facility.
Loss-making Dubai Holding Commercial Operations Group (DHCOG) had previously delayed the loan in July and then September. “The extension is required to finalise a new long-term facility”, it said on Wednesday.
DHCOG, a unit of the conglomerate owned by the Gulf Arab emirate’s ruler, took a big hit from its exposure to Dubai’s property crash and said in June it may resort to asset sales to deal with its debt after posting a $6.2 billion loss for 2009.
All eyes have been on Dubai Holding and its units following fellow state-linked conglomerate Dubai World’s restructuring of almost $25 billion in debt.
At a meeting with reporters on Sunday, Sheikh Ahmed bin Saeed al-Maktoum, chairman of the Dubai Supreme Fiscal Committee, said Dubai Holding was facing challenges as a result of the global financial crisis but said the company still had solid assets and investments.
Officials at the meeting said the debt-laden emirate may sell stakes in state-owned companies as it tries to dig itself out of a $100 billion-plus debt pile.