About 20 lenders to Dubai Group LLC, which is restructuring $6 billion of debt, declined an offer to receive 18.5 cents on the dollar in favor of full repayment over 12 years, according to two bankers familiar with the plan.
None of the lenders decided to take the offer before the deadline expired last month, the bankers said, asking not to be identified as talks aren’t public. The terms were made to the group after four lenders including Royal Bank of Scotland Group Plc and Standard Bank Group Ltd. (SBK) had agreed to them earlier to end an arbitration case they had started against Dubai Group.
Dubai Group, controlled by Dubai Holding LLC, is one of several companies in the emirate seeking to restructure loans as property and asset prices slumped and credit markets froze after the 2008 global credit crisis. RBS and the other three lenders split from the negotiating group in July and started separate arbitration proceedings, settling earlier this year in favor of the 18.5 cents on the dollar offer. The group of 20 banks were then offered those terms or to wait 12 years for full repayment.
Read more: http://www.gulfbase.com/news/dubai-group-banks-said-to-reject-offer-made-to-rbs-in-debt-deal/228336
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