Dubai World, a Dubai government-owned conglomerate that was forced to delay debt repayments after the financial crisis, has received unanimous approval from creditors of its request for a further extension on debt totalling $US14.6 billion ($A18.8bn), it said Sunday.
Dubai World, which has interests in real estate, shipping and financial services, announced the new extension agreement last month and said it would use a special law called Decree 57 to push it through. That decree allows Dubai World to enforce debt-restructuring terms on dissenting creditors through a special tribunal, as long as it is accepted by more than two-thirds of creditors by value.
Now, however, with the acceptance of the deal by all creditors, Dubai World no longer needs to use the Dubai World Tribunal, Robin Abraham, a partner at Clifford Chance who represents Dubai World in the proceedings, said on Sunday.
"Since we got 100 per cent, we don't need to use Decree 57," he said. "All the banks now need to sign the documents, which is not something that will be done today or tomorrow."
Getting a final sign-off from all the creditors would take a number of weeks, Mr Abraham said.
Meanwhile, Dubai World has applied to the tribunal to discontinue the proceedings, according to an order signed Sunday by tribunal Chairman Sir Anthony Evans. The tribunal is set to hear that application on May 10, the order says, although Dubai World could apply to have it heard at an earlier date.
Dubai World's new extension calls for early repayment of $US2.92bn of debt that had been due this year, plus the extension of the remaining 2018 maturities until 2022.
"We now have more time to dispose of noncore assets to achieve optimum value to the benefit of the company and its lenders," Dubai World said in a statement. "We are in a good position to continue to de-lever and obtain favourable credit terms sooner than expected."
The extension is the second since the financial crisis for Dubai World.
The company entered talks with creditors on its first restructuring, which covered about $US25bn of debt, in late 2009. It became clear as the post-crisis stress dragged on, however, that more time would be needed to address the debt load, leading to talks that resulted in the extension until 2022.
Dubai World plans to repay creditors primarily through asset sales, which have accelerated in recent years. The company sold hotels in Dubai and Miami and last year divested itself of an industrial parks operator in Dubai for $US2.6bn.