Dubai Group has signed a $10 billion debt restructuring agreement, two sources with knowledge of the matter told Reuters on Thursday, bringing an end to the last major hangover from the emirate’s 2009 financial crisis.
The investment vehicle owned by the emirate’s ruler signed the restructuring deal on Wednesday, the sources said, speaking on condition of anonymity as the information isn’t public.
Lenders to the unit of Dubai Holding, which include France’s Natixis and Dubai’s Emirates NBD, still have to sign and return the last piece of documentation; this should happen in the next few days, the sources added.
Dubai Group had been in negotiations with creditors since late 2010 after it missed payments on two debt facilities. Out of its $10 billion total debt, $6 billion is owed to banks and the remaining $4 billion is classed as inter-company loans.
Dubai Group declined to comment.