Dubai International seeks debt extension

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The Independent Online

Dubai International Capital (DIC), the private equity unit of flagship conglomerate Dubai Holding, is seeking a three-month debt delay, in the latest blow to the emirate's financial image. The investment unit has a $1.25bn (£864m) loan maturing in June.

"Dubai International Capital and a co-ordinating committee of banks today presented to lenders a request for a three-month extension to 30 September 2010 of certain maturities," the company said in a statement.

Earlier in May, Dubai World, another state-owned conglomerate, reached a deal to restructure $23.5bn in debt with its core lenders, addressing the most immediate of a string of problems facing investors in Dubai.

"DIC is a little opaque. There's a lot of need for more capital in the system, and Dubai World was not the end of the game," said Robert McKinnon, ASAS Capital chief investment officer. "We will probably see more restructuring of Dubai entities, but on a smaller scale than Dubai World, and I don't think this announcement will be a catalyst for a new market crash."