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Banks meet with Dubai World

A group of international and regional banks met Dubai World for the first time on Monday as talks began on the company's efforts to restructure $26 billion of debt, the Financial Times reported on Monday.

Citing people familiar with the process, the newspaper reported that it was a "kick-off" meeting for what was expected to be a long process, and that it included key creditors expected to form a steering committee.

The newspaper reported that a key test of the restructuring process will be an Islamic bond, or sukuk, issued by Nakheel, the real estate arm of Dubai World, which is due to be redeemed at $4.05 billion on December 14.

The report cited a person close to the talks as saying there was a range of views among lenders. "Some lenders think if there is a standstill, everyone should standstill. At the other end, some believe the sukuk has to be repaid at all costs."

London-listed Standard Chartered, HSBC, Lloyds and Roy Bank of Scotland were due to attend the meeting, along with United Arab Emirates lenders Abu Dhabi Commercial Bank and Emirates NBD.

The United Arab Emirates central bank has told local lenders to report their exposure to Dubai World and related entities, bankers said on Monday. (Reuters)