A Japanese bank agreed to sell $100 million of loans related to Dubai World [DBWLD.UL] before completion of the state-owned entity's debt restructuring plan, a newspaper reported on Sunday.
The bank, which the paper did not name, began selling its loans last summer before Dubai World reached an agreement with its creditors in September, The National reported, citing sources that it did not identify.
A sale agreement reached last week would provide the Japanese bank with between 60 cents and 65 cents on the dollar. The bank's first sale of $25 million of a $5.5 billion loan sold at 55 cents on the dollar last May, sources said. While conglomerate Dubai World obtained 100 percent approval for the restructuring of almost $25 billion in debt, banks have not received final documentation that would seal the deal. Under the terms of the restructuring, banks will receive repayments through two new loans maturing over five and eight years.
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