Dubai World prepays Dh1bn to creditors

Dubai World has prepaid $284.5 million (Dh1 billion) to creditors under its $25 billion debt restructuring plan, sources familiar with the matter said on Wednesday.

The conglomerate obtained money for the prepayment from asset sales, said the sources, who declined to be named because the matter isn't public.

Under the terms of the restructuring deal, cash raised from asset sales above a threshold of $300 million is to be distributed as early repayments to creditors, which include big Western and Gulf banks, one source said.

A Dubai World spokesman declined to comment.

Last December, a unit of Dubai World sold its 50 percent stake in Miami Beach's landmark Fontainebleau hotel back to south Florida developer Turnberry. The price was not disclosed, but Dubai World originally had paid $375 million for the stake in 2008.

Last month Nakheel said it was repaying Dh2.35 billion ($640 million) of bank debt 18 months ahead of its maturity in September 2015.

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