DIC agrees debt restructuring terms with lenders; replaces CEO

Dubai International Capital (DIC), the private equity investment arm of Dubai Holding, today announced in a media statement that headline economic terms have been agreed in principle with the Coordinating Committee of lenders (CoCom) representing the company’s financial creditors in regard to the restructuring of approximately $2.5bn of liabilities.

The agreements in principle are subject to internal credit approvals by members of the CoCom and will require the support of the wider lender groups, the company said in the statement.

Under the agreed headline economic terms relating to $2bn of liabilities, creditors will extend their debt for six years and receive a 2 per cent cash interest coupon on the restructured facilities.

The relevant members of the CoCom represent 67 per cent of these liabilities by value and have unanimously recommended the terms to their wider lender group, it was announced.

DIC further announced that an agreement has also been reached in relation to a $500m facility where creditors will extend their debt for four years, with an unchanged cash interest coupon. The relevant member of the CoCom has also recommended this proposal to its wider lender group.

The company highlighted that successful agreements are an important milestone and will allow for the implementation of the management team’s long term business plan. "This plan will maximise the value of the company’s portfolio of assets for the benefit of all stakeholders. The portfolio is sound and is performing ahead of management’s expectations," the statement said.

DIC also announced that following this agreement with the CoCom and after five years with DIC, CEO Anand Krishnan has retired and has been replaced by David Smoot, aged 41, the current CIO.

Smoot, the statement said, has led the investment team at DIC for the last two years and has worked closely with the managements of DIC's portfolio companies to position them for future growth. He is chairman of portfolio companies Almatis, Doncasters and Jordan Dubai Capital.

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