A committee of creditors and struggling Dubai investment company Dubai World agreed on Thursday to restructure around $23.5 billion in debt, to reduce its debt obligations by nearly 40 percent.
Almost $9 billion in debt would be converted into an equity stake, with the remaining due in portions of five-year-and-eight-year maturities.
Dubai World owns properties around the world in transportation and logistics.
In November 2009 Dubai World’s announced that it needed to delay its payment of debt shook the financial markets and raised concern among investors whether the company, which is backed by the Dubai government, was able to repay its obligations. A month after the crisis, emirate Abu Dhabi announced a $10 billion loan to help Dubai World fund its obligations.