The Dubai Group would become an independent company once the planned US$10 billion debt restructuring process has been completed. This was confirmed by a top official of the investment firm owned by the ruler of Dubai.
The group is a subsidiary of Dubai Holding, the investment firm owned by Sheikh Mohammed Bin Rashid al-Maktoum. According to Ahmad Bin Bayat, CEO of Dubai Holding, there is anticipation that an executive agreement would be signed regarding the creditors' interests in the restructuring within the next six weeks.
In an interview with Reuters, Bin Byat said, "We expect the deal to be signed within six weeks, The term sheet is now approved by the core creditors committee and is being circulated to the credit committee."
Last Wednesday, sources familiar with the deal said that the unsecured creditors have been sent final restructuring documents. It is expected that the banks and Dubai Group would formalize a deal by June 6.
The proposal includes asset sales as well as inclusion of representatives of creditor banks and shareholders as well as independent members to form part of the board of Dubai Group.
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