Dubai World Debt Restructuring Impacts DP Expansion Plans

30 November 2009 (Last Updated November 30th, 2009 18:30)

Troubled global conglomerate Dubai World's $59bn debt restructuring plan could impact the terminal expansion plan of DP World, it has been revealed. Dubai World, which owns 77% of DP World, said the latter will be excluded from its debt-standstill talks and restructuring. Acc

Troubled global conglomerate Dubai World’s $59bn debt restructuring plan could impact the terminal expansion plan of DP World, it has been revealed.

Dubai World, which owns 77% of DP World, said the latter will be excluded from its debt-standstill talks and restructuring.

According to maritime experts, debt liabilities could cast a shadow on the terminal operator’s source of financing.

In a statement, DP World said the government of Dubai has confirmed that DP World and its debt are not included in the restructuring process for Dubai World announced earlier.

The government said it will restructure Dubai World and will seek a six-month standstill with its debts, including a $3.52bn Islamic bond issued by its subsidiary Nakheel.