Dubai World makes deal with creditors

Dubai World has come to a provisional agreement with its lenders to restructure its $23.5bn (£16.4bn) of debt.

Under the terms of the deal, the stricken state-owned investment company, and its property arm Nakheel, will see $8.9bn of Government debt converted into equity. The Government is also committing to $500m of funding and an interest facility of up to $1bn, while maintaining sole ownership of the company. Dubai World will be left with $14.4bn of debt when the restructure is complete. In March the Dubai Government pledged a $9.5bn bailout package for the firm after it became unable to service its debt and asked for a six-month repayment break. Aidan Birkett, the chief restructuring...