US debt fund only one out of Dubai World deal

The US-based distressed debt fund Aurelius Capital Management is the only creditor to have not signed on to Dubai World's $24.9 billion restructuring deal, a report said on Monday.

The company, which bought $5 million of debt in the secondary market, could still approve the deal, people close to the matter told Financial Times. But by missing the September 9 deadline to vote on the deal, Aurelius Capital will not receive the incentive fees paid to creditors that signed up in time.

State-owned conglomerate Dubai World reached an agreement with over 99 per cent of its creditors by value to restructure its almost $25 billion in liabilities, the Dubai government said in a statement on Friday.

Dubai World said in a separate statement it was well positioned to close the restructuring in coming weeks.
A Dubai World spokesman was not immediately available for comment.

Dubai World's agreement with most of its creditors is seen as a positive step for Dubai.