Dubai Group debt deal 'to be signed in Q2'
Dubai, April 12, 2011
Dubai Group, part of a conglomerate owned by the emirate's ruler, is nearing a debt deal with its lenders and an agreement may be signed by the end of second-quarter, the head of one of its creditor banks said.
Financial services firm Dubai Group set up a bank committee for debt restructuring talks last year. It has missed at least two scheduled payments on separate loans.
"We are at the final stages. We are happy with the progress. We expect a few minor details to be ironed out but we expect the deal to be signed," said Hussain Al Qemzi, chief executive of Noor Islamic Bank, one of the banks on the creditor committee.
"Within the second quarter I see it will be definitely signed," Qemzi told Reuters on the sidelines of a conference in Dubai, adding when the debt problems at Dubai Group first surfaced, the bank was not prepared.
Dubai Group, which focuses on banking, insurance and investments, has stakes in Dubai-based investment bank Shuaa Capital, Greek group Marfin Investment Group and Australian company Citigold Corp.
Its debt talks come on the heels of a raft of restructurings underway in the emirate after a property collapse and the onset of the global economic downturn. - Reuters