U.S. debt fund shuns Dubai World debt deal: report

DUBAI (BestGrowthStock) – 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 (DBWLD.UL: ) 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.

(Reporting by Shaheen Pasha; Editing by Dinesh Nair)

U.S. debt fund shuns Dubai World debt deal: report