DUBAI - Hopes of progress this week on Dubai World $26 billion debt restructuring lifted stocks and eased fears of default but potential divisions emerged among creditors to the state-owned conglomerate.
Dubai World could put its plan to a creditor coordinating committee that includes HSBC and Standard Chartered in London this week but was being delayed by efforts to value the assets of its Nakheel unit, builder of Dubai's palm-shaped islands, bankers said.
While some of the 97 creditors expect to see the option of full repayment on the table, others are willing to take a "haircut" in order to get some money back fast, bankers said.
"We are not willing to take a big haircut ... in that case we would go back to the committee to see what our options are," said one Gulf-based banker, who asked not to be named. "Full repayment should be an option, timing is less of an issue."
Dubai World shocked global markets in November, when it requested a standstill on its debt repayments and said it would come up with a restructuring plan.
Dubai has said the plan would be "fair" but a plan could propose extending debt maturities and Dow Jones said creditors may get as little as 60 cents on the dollar.
"There are those banks who want to have the money immediately and take a haircut and those who can wait for a longer time," said one banker at an Asian lender which is among the creditors.
"If one of the lenders doesn't accept both options, they can go for a legal case. It's in the interest of the bankers and the company there is some agreement."
