DUBAI (Reuters) – U.S.-based distressed debt fund Aurelius Capital Management is the only creditor to have not signed on to Dubai World’s $24.9 billion restructuring deal, the Financial Times said on Monday citing people close to the talks.
The company, which bought $5 million of debt in the secondary market, could still approve the deal, people close to the matter told the paper. But by missing the September 9 deadline to vote on the deal, Aurelius Capital will not receive the incentive fees paid to creditors that signed up in time.
State-owned conglomerate Dubai World reached an agreement with over 99 percent of its creditors by value to restructure its almost $25 billion in liabilities, the Dubai government said in a statement on Friday.
Dubai World said in a separate statement it was well positioned to close the restructuring in coming weeks.
A Dubai World spokesman was not immediately available for comment.
While Dubai World’s agreement with most of its creditors is seen as a positive step for Dubai, the announcement came just days after a unit of Dubai Holding, the conglomerate owned by Dubai’s ruler, said it will delay repayment on a $555 million loan, the second time it has failed to meet a repayment deadline.