Dubai Loan Standoff Is Said to Pit State Company Against Lenders
- Loan was linked to acquisition of 10% Och-Ziff stake in 2007
- Mashreq pushing Dubai Holding for bailout to avoid writedown
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A unit of the main conglomerate controlled by Dubai’s ruler is facing off against creditors including Mashreqbank PSC after telling them it won’t fully repay a loan that was restructured in 2013, according to people familiar with the matter.
The $1.2 billion syndicated facility is linked to Dubai Holding Investments Group LLC’s acquisition in 2007 of a 10% stake in U.S. hedge fund Och-Ziff Capital Management Group, since renamed Sculptor Capital Management, the people said, asking not be named because of the sensitivity of the matter.