Timeline: Dubai World core lenders agree debt deal

DUBAI (BestGrowthStock) – Dubai World, the state-owned conglomerate, has reached a deal in principle with its core lenders to restructure $23.5 billion of debt.

The company’s major real estate subsidiaries Nakheel and Limitless are included in the restructuring.

Below are the key events in Dubai World’s debt problems:

2004 – Bubble conditions appear in Dubai’s credit and real estate sectors; developers flood the market with ambitious projects through easy access to bank financing.

2008 – Dubai government launches $4 billion medium term notes (MTN) bond program; property prices peak.

2009

FEBRUARY – Dubai launches $20 billion bonds, easing default worries, and UAE central bank subscribes to $10 billion.

APRIL – Dubai hires investment bank Rothschild to advise on $20 billion support fund to help indebted companies.

JUNE – Dubai World hires turnaround experts Alix Partners to help with restructuring.

SEPTEMBER – Dubai World says talking with core banks to reschedule $12 billion of debt. Nakheel’s overseas properties transferred to Istithmar World, Dubai World’s private equity unit.

OCTOBER – Dubai World says organizational restructuring nearly over, and will save $800 million over three years; cuts global workforce 15 percent.

Dubai government issues $2 billion Islamic bond.

NOVEMBER

Dubai ruler says emirate has Abu Dhabi backing.

25 – Dubai government issues $5 billion bond to two Abu Dhabi controlled banks. Shortly afterwards, government says Dubai World to request six-month standstill.

26 – Dubai government says ports operator DP World excluded from Dubai World restructuring.

DECEMBER

14 – Dubai pays Nakheel’s $4.1 billion bond in full after Abu Dhabi offers $5 billion in last-minute bailout.

21 – Creditors meet with Dubai World for the first time after standstill announcement, and form coordinating committee.

2010

JANUARY

20 – Dubai World unit Istithmar World, owner of Barney’s New York, CEO resigns in management reshuffle.

FEBRUARY – Trial balloon floats 40 percent haircut to creditors and repayment after 7 years; government denies.

MARCH

31 – Loan repayment on $1.2 billion Limitless due

End – Government deadline on Dubai World proposal.

APRIL

End – Abu Dhabi financial aid runs out; Dubai World’s informal deadline for plan to creditors.

MAY

13 – Dubai repays $980 million Islamic bond issued by Nakheel, which says has received 50 percent approval from its trade creditors as part of restructuring proposal

19 – Arabtec, the UAE’s largest construction firm by market value, says it has signed on to Nakheel’s debt repayment offer

20 – Dubai World says it has reached an initial deal on the restructuring with core creditors.

JUNE – Dubai World $2.1 billion loan matures.

Stock Report

(Compiled by Raissa Kasolowsky and Rachna Uppal, editing by Will Waterman)

Timeline: Dubai World core lenders agree debt deal