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Despite crippling debt in Dubai, Tecom says SmartCity ‘is on track’
Tecom Investments has declared SmartCity Malta stays on track, after Dubai International Capital, the investment arm of Dubai Holding, Sunday confirmed its board was dissolved earlier this year amid restructuring plans.
The terse two sentences by Tecom Investments stated that SmartCity Malta will be inaugurated on October 10 this year and “any news related to other Dubai Holding entities has no impact on SmartCity Malta or its operations.”
DIC last month asked lenders for a three-month extension on some of its debts that would allow it to implement a "consensual longer term plan" that in turn would allow it to "maximize the value of its business for the benefit of all its stakeholders."
The investment firm has $2.6 billion of debt maturing by 2011, with $1.25 billion due this month. At its peak, DIC managed assets worth more than $13 billion and held stakes in some of the world's largest companies, including the former DaimlerChrysler.
But the global financial crisis hit its portfolio hard. Dubai Holding, which has overall debt of around $12 billion, is controlled by the emirate's ruler Sheik Mohammed bin Rashid Al Maktoum. In May, Dubai Holding's subsidiaries--Dubai Holding Commercial Operations, which oversees Dubai Holding's property, business-park and hospitality investments, including hotel operator Jumeirah; Dubai Group, which is one of Dubai Holding's investment arms; and DIC all appointed financial advisers ahead of a potential debt restructuring.
