JPMorgan Sees Haircut, Extension on Dubai World Debt

Category Business | Tuesday, March 9th, 2010

March 9 (Bloomberg) — Dubai World, the state-owned holding company restructuring $26 billion in debt, may offer creditors a 20 percent haircut, a 10-year extension on maturities and a government repayment guarantee for creditors, JPMorgan Chase & Co. said.

The forecast excludes Nakheel PJSC bonds, which the New York-based bank said may be repaid at face value over a longer maturity, according to a report dated March 8.

JPMorgan maintained its “neutral” recommendation on Nakheel’s Islamic bonds due this year and next, saying the securities “look expensive” at current levels, assuming the restructuring stretches out maturities.

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