Some creditors seek to sell Dubai World debt: report

Some creditors of Dubai World have sought to sell their loans and reduce exposure to the troubled flagship investment company of Dubai, ahead of its debt restructuring, media reports said today.

A Financial Times website report quoted debt traders as telling potential investors of a seller looking to offload about $100 million of Dubai World loans.

Dubai World is currently restructuring $22 billion of debt and the $100 million may seem meagre compared to the total amount.

The report said the sellers are probably small international banks, which are unhappy with the restructuring process and are in dire need for cash.

Dubai World is currently in talks with its creditors to finalise a six-month freeze on payments ahead of a further restructuring of its debt.

Dubai World is the holding company, which operates a host of companies ranging from logistics and transport, drydocks and maritime, urban development, investment and financial services, energy and natural resources.

Dubai World, which operates a highly diversified spectrum of industrial segments, plays a major role in the emirate's rapid economic growth.