Dubai International Capital LLC, an investment company owned by Dubai’s ruler, plans to restructure its business by the end of the year, Chief Investment Officer David Smoot said.

“Our goal is to be out of the restructuring business by the end of the year and back into the growth phase,” Smoot told reporters in Abu Dhabi on Monday.
Dubai’s state-owned companies are struggling to repay loans as the worst financial crisis since the 1930s froze credit markets and prevented them from raising new debt. Dubai World, one of the emirate’s three state-owned holding companies, announced last month that it had reached a deal with 99 percent of its creditors to alter the terms on $24.9 billion of loans.
DIC, owned by Dubai Holding LLC, a group with interests spanning property, hospitality and investments, presented a plan to creditors to sell assets over five years to repay $2.6 billion of debt, two people with knowledge of the plan said Sept. 15. Six banks led by HSBC Holdings Plc and Emirates NBD PJSC are negotiating with DIC on behalf of 26 lenders on its debt restructuring plan, one of the people said.
DIC’s holdings include stakes in budget hotel chain Travelodge Hotels Ltd., U.K.-based medical imaging company Alliance Medical Ltd. and Mauser AG, a German industrial packaging company.
----------Alliance medical
Alliance Medical’s board agreed to consider a sale to help repay debt following a demand by senior lenders, a person with knowledge of the matter said Aug. 25. Lenders are also working on an alternative debt-restructuring proposal to the one suggested by Dubai International and junior mezzanine lenders on July 15, the person said.
The company is taking a flexible approach in talks over Alliance Medical’s debt, Smoot said. “We are still fighting that battle,” he said. “Our preference is to maximize our return of capital, typically with control.”
The U.K.-based medical-imaging company may attract bids from BC Partners Ltd., CVC Capital Partners Ltd. and Euromedic International, two people with knowledge of the matter said on Oct 13.
(Source: Bloomberg)