DUBAI, (Reuters) – Dubai World’s restructuring plan is “very fair” and could be signed by lenders in coming weeks, a senior executive at one of its major bank creditors said on Monday.
Simon Cooper, head of HSBC’s Middle East operations, made the remarks on the sidelines of an HSBC trade survey launch.
“The proposal is very fair and a good way forward for the United Arab Emirates,” Cooper said in remarks confirmed by a spokesman.
“I see no reason why the signing won’t be in a few weeks.”
Dubai unveiled a $9.5 billion rescue plan for Dubai World and its property unit Nakheel in March. Creditors to Dubai World are still in talks about the interest rate offer for the new debt issued under the plan.
British bank HSBC is among a seven-member panel leading talks with the state-owned conglomerate.
Dubai World is said to offer lenders a 1 percent interest rate and 1 percent payment-in kind on two tranches of debt over a five- and eight-year period, but that proposal has received a lukewarm reception from lenders.
“Of course there are negotiations going on about the interest rates and all the terms,” Cooper said.
Other British banks on the panel include Standard Chartered, Royal Bank of Scotland and Lloyds.