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10-28-2010, 01:00 PM
Dubai World wins support


DUBAI: Dubai World secured full creditor support for its $24.9 billion debt restructuring plan after the last holdout lender unloaded its claim.
The deal closes one chapter in Dubai's efforts to get its financial house in order nearly a year after it shocked global markets by acknowledging it could not repay all its bills.
State-owned Dubai World announced last month that nearly all its creditors had signed on to the debt restructuring plan, which extends the amount of time the firm has to repay lenders.
The lack of total agreement could have drawn it into protracted and potentially costly legal wrangling.
Dubai World confirmed it had all lenders on board but gave no details.
"We've reached a 100 per cent agreement with creditors," a spokesman said.
Dubai World gained full support after a distressed US debt firm that had been holding out on the deal sold a $5 million sliver of debt to Deutsche Bank, according to a report yesterday in the Financial Times.
Jennifer Burner, a spokeswoman for the debt firm, Aurelius Capital Management, confirmed the accuracy of the report but offered no further comment.
Deutsche Bank spokesman Michael Lermer declined to comment, citing a possible relationship with a client. The New York-based debt firm, Aurelius Capital Management, could not immediately be reached.
Dubai worked for months to convince more than 70 lenders to sign on to its restructuring plan. The deal offers creditors full repayment on the principal of their outstanding loans over a five to eight year period.