DUBAI, (Reuters) – State-linked indebted conglomerate Dubai World intends to officially ask creditors for a standstill on $22 billion in debt this month, until it completes restructuring, an Arabic-language daily said on Wednesday.
Citing banking sources in creditor banks, UAE’s Al Ittihad said restructuring might require a period of six months.
“This important step by Dubai World this month will represent the most significant transitional phase in the group’s negotiations with creditors,” sources told the paper.
Dubai World rocked global markets on Nov. 25 with plans to request a delay on repaying $26 billion in debt linked to its main property units Nakheel and Limitless World.
It staved off default on a $4.1 billion Islamic bond linked to Nakheel after a last-minute bailout from Abu Dhabi.
Officials from Dubai World could not immediately comment on the news.