Lex: Dubai World

Dubai World has agreed economic terms with its main creditors over the most controversial aspect of the state-owned company’s $23.5bn debt restructuring, providing hope that the major drag on the emirate’s economy can be removed quickly. The troubled conglomerate said on Thursday that the holding company’s co-ordinating committee of financial creditors, representing 60 per cent of the debt owed to lenders, had agreed in principle terms on the $14.4bn owed by the holding company in a proposal presented at the end of March. Richard Stovin-Bradford analyses the deal.