Dubai World's bank creditors have offered their loans for sale ahead of the restructuring of the conglomerate's debts, in a bid to reduce exposure, says a media report.
According to the publication, debt traders told potential investors last week that a seller was seeking to offload about USD 100 million of loans, however, it is uncertain that the trade would take place. Attributing to investors and traders the, daily said the debt could be sold at 70 per cent of face value.
Other loans are believed to have been offered privately to potential investors. While the identity of potential seller has not been revealed. "The sellers are mainly some of the smaller international banks...which are starting to get discouraged by the whole process," the report quoted a banker based in Dubai as saying.
Bank creditors often choose to sell their loans at a discount in the secondary market in debt restructuring allowing distressed debt funds to build positions and influence the restructuring negotiations.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
