Dubai Holding, the global investment holding company, said its financial services arm, Dubai Group, has reached final agreement with all financial lenders regarding the restructuring of approximately $6 billion of bank facilities.
Another $4 billion of related party debt has been subordinated to the claims of the bank creditors.
As per the agreement, lenders agreed to extend maturity dates to December 31, 2016 for secured facilities and to December 31, 2024 for partially secured and unsecured facilities.
Ahmad Bin Byat, Chief Executive Officer of Dubai Holding, said: "We have successfully completed the financial restructuring of Dubai Group. This was a complex set of negotiations given the number of lenders involved and I would like to thank all stakeholders for their cooperation. Now that all the restructuring required in Dubai Holding Investment Group (DHIG) is complete, we can focus without distraction on growing the Group’s commercial operations and enhance further its role in supporting Dubai’s growing economy."
Fadel Al-Ali, Chairman of Dubai Group, said: "This successful conclusion is an important milestone towards our future and long-term financial stability. We are confident that this restructuring, combined with the improving market conditions and asset valuations, will provide us with an excellent platform to move forward."
Dubai Holding also announced the appointment of a new Board of Directors for Dubai Group post restructuring.
Fadel Al Ali, who was Dubai Group’s CEO over the last few years, has been appointed Chairman. Aidan Birkett, Michael McLoughlin and Abdullah Sharafi have been appointed as independent non-executive directors. The board directors were appointed for their significant European and Middle East financial management experience and their expertise in leading businesses around the world.
Dubai Holding also confirmed that Ahmed Al Qassim was appointed as the Chief Executive Officer of Dubai Group and Board member. Ahmed brings with him a wealth of experience working for leading local and international investment companies. Most recently he was Director; of Investment Banking at Emirates NBD Capital, where he led the Equity Capital Markets team and the Mergers and Acquisitions vertical of the bank.
Ahmad Bin Byat added; "Ahmed Al Qassim’s appointment comes as we progress working on Dubai Group’s long term business plan. I am confident that he will make an important contribution to maximise the value of the portfolio, drawing on his extensive experience working with international, regional and local investment firms."
Follow Emirates 24|7 on Google News.