Dubai's government said Monday that state-owned conglomerate Dubai World will this month present creditors a proposal on restructuring its 22 billion dollars of debt.
"A formal proposal will be presented by Dubai World to creditors in March," a government spokesperson told AFP in an email message, refusing to comment on reports that an offer was expected this week.
"The process is confidential," the spokesperson said.
The Gulf emirate of Dubai shook global stock markets in November last year, when it called for a debt moratorium for the troubled subsidiaries of Dubai World.
The conglomerate began negotiations with creditors in December, shortly after it settled 4.1 billion dollars of debt owed by its unit Nakheel thanks to a last-minute bailout from Abu Dhabi.
The government said last month that it expected Dubai World to present a debt-restructuring plan to its creditors in March.
The Financial Times reported on Monday that the group was expected to approach lenders with a plan this week.
It quoted bankers as saying the plan is expected to offer lenders an option to be repaid over several years but with a "haircut," or to be paid more during a longer term, "potentially with a government guarantee."
It said some bankers were concerned the proposals could lead to a split among creditors.
Four British banks -- HSBC, Lloyds, RBS and Standard Chartered -- are believed to have a Dubai World debt exposure exceeding five billion dollars.
Dubai said on February 7 it had advanced Dubai World 6.2 billion dollars during the previous 12 months, and that it was prepared to put up even more money if necessary.
Dubai World's total debt, including liabilities, is around 60 billion dollars.
The emirate's debt is estimated at between 80 and 100 billion dollars, but some analysts say it could be as high as 170 billion.
Copyright 2010 AFP Global Edition
