Dubai Group says committed to reaching deal with creditors

Dubai Group LLC is still in discussions with lenders and is committed to reaching an agreement on a debt restructuring, a company spokesperson said today.

Reuters reported yesterday that the Dubai Supreme Fiscal Council walked away from talks with creditors over Dubai Group’s $10 billion debt restructuring, citing two people it didn’t identify. Dubai Group spokesperson declined to be identified by name, citing company regulations.

Dubai Group, controlled by Dubai Holding LLC, is one of several companies in the emirate seeking to alter terms on borrowings after property prices slumped amid the global financial crisis, limiting access to credit markets. The company appointed eight banks to represent creditors in two committees in January 2011 to help speed up an agreement.

Dubai World, a state-owned holding company, in March 2011 signed an accord with its creditors on about $25bn of debt, marking the end of a credit crisis that roiled markets in 2009.

The cost of insuring Dubai’s debt against default fell nine basis point to 416 yesterday, according to data provider CMA, which is owned by CME Group Inc and compiles prices quoted by dealers in the privately negotiated market. Dubai’s credit- default swaps are the third highest in the Middle East and Africa after Egypt and Lebanon.