Dubai has set up of a tribunal to settle all financial disputes between Dubai World, which is seeking to restructure around $26 billion of debt, and its creditors.
The tribunal will hear and decide any demand or claim against Dubai World, including any demand to “dissolve or liquidate” the state-owned corporation, said a statement issued by the emirate ruler, Sheikh Mohammed bin Rashid Al Maktoum.
The setting up of the tribunal, to be established in the Dubai International Financial Centre, a tax-free business park for financial service firms, is part of a new insolvency code used in the emirate.
The move came hours after the government announced it would repay $4.1 billion to holders of the Islamic bonds (sukuk) of Nakheel, property developing unit of Dubai World, which matured on Monday, following a $10 billion support from Abu Dhabi.
Anthony Evans, Chief Justice of DIFC Courts, has been appointed the chairman of the tribunal while Michael Hwang and John Chadwick will be members. The tribunal shall not comprise more than five members, the statement said.
Dubai World announced on November 25 it would seek a standstill agreement with all creditors and extend all loan maturities to at least May 30, 2010.
Reports here said the conglomerate met six main creditors, including the Royal Bank of Scotland Group Plc, on December 7.