Dubai World to begin renegotiating debt next week

State-owned conglomerate Dubai World will meet with creditors next week to begin renegotiating $22 billion of debt, The National reported yesterday.

Dubai World would meet more than 90 bank creditors on Monday, beginning a "long, drawn out process" of negotiations, the newspaper, owned by the government of Abu Dhabi, said.

The talks should cover the remaining $22 billion of debt the company has said it wants to renegotiate. Thanks to a handout from Dubai's deep-pocketed neighbour Abu Dhabi, the emirate was able to cover $4.1 billion of Dubai World subsidiary Nakheel's debt that was due on Monday.

Dubai faces financial difficulties due to debts estimated at between $80 and $100 billion. The emirate announced on November 25 that it sought a six-month debt moratorium for Dubai World, sparking global fears of a Dubai debt default.

Dubai World, which has debts estimated at $59 billion, announced on November 30 that it would restructure 10 companies comprising the group, including Nakheel, and renegotiate a portion of their debts valued at $26 billion.