Wednesday September 8, 2010
Dubai unit delays loan repayment
DUBAI: Dubai Holding’s main unit will delay repayment on a US$555mil loan until Nov 30, the company said yesterday, the second time it has failed to meet a repayment deadline.
DHCOG, a unit of the conglomerate owned by the Gulf Arab emirate’s ruler, took a big hit on its exposure to Dubai’s property crash.
The company said in June it may resort to asset sales to deal with its debt after posting a US$6.2bil loss for 2009.
Its assets include Jumeirah hotel group and business parks.
DHCOG was due to repay the US$555mil loan yesterday, having already extended it for two months in July. Market participants had expected the move.
“The restructuring and rescheduling of debt is still in progress,” Haissam Arabi, chief executive and fund manager at Gulfmena Alternative Investments said.
Concerns about the overall debt burden of Dubai’s state-linked companies mounted after Dubai announced a standstill on repaying US$26bil in debt as it restructured conglomerate Dubai World.
It unveiled a US$9.5bil rescue plan for the firm in March. – Reuters