Dubai World to propose plan to restructure $26 bn debt

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Indebted state-owned conglomerate Dubai World is expected to propose imminently the terms of a plan to restructure USD 26 billion in debt to its key creditors.

In November, Dubai World announced it would request creditor banks for a standstill on debt payments, sending global markets tumbling. The company's major real estate subsidiaries, Nakheel and Limitless, are included in the restructuring.

Below is a timeline of key dates associated with Dubai World's restructuring announcement and upcoming plan.

2004:

Bubble conditions appear in Dubai's credit and real estate sectors; developers flood the market with ambitious projects through easy access to bank financing.

2008:

Dubai government launches USD 4 billion medium term notes (MTN) bond programme; property prices peak.

2009:

FEBRUARY - Dubai launches USD 20 billion bonds, easing default worries, and UAE central bank immediately subscribes to USD 10 billion.

APRIL: Government issues USD 2 billion Islamic bond.

NOVEMBER: Dubai ruler says emirate has Abu Dhabi backing.

NOVEMBE 5: Dubai government issues USD 5 billion bond to two Abu Dhabi controlled banks. Shortly afterwards, government says Dubai World to request six-month standstill.

NOVEMBER 26: Dubai government says ports operator DP World excluded from Dubai World restructuring.

DECEMBER 14: Dubai pays Nakheel's USD 4.1 billion bond in full after Abu Dhabi offers USD 5 billion in last minute bailout.

DECEMBER 21: Creditors meet with Dubai World for the first time after standstill announcement, and form coordinating committee.

2010:

JANUARY 20: Dubai World unit Istithmar World, owner of Barney's New York, CEO resigns in management reshuffle.

FEBRUARY: Trial balloon floats 40% haircut to creditors and repayment after 7 years; government denies.

MARCH 31: Loan repayment on USD 1.2 billion Limitless due

End: Government deadline on Dubai World proposal.

APRIL end: Abu Dhabi financial aid runs out; Dubai World's informal deadline for plan to creditors.

MAY 13: USD 980 million Nakheel sukuk repayment due.

JUNE: Dubai World USD 2.1 billion loan matures.