* RBS, Standard Bank and Commerzbank start legal action
* Unprecedented attempt to secure debt repayment from Dubai
* Debt deal being considered by all lenders
* Tactic to force better terms from investment firm
* Dubai Group hoping for $10 bln debt deal by year-end
-sources
By David French and Mirna Sleiman
DUBAI, Sept 13 (Reuters) – Royal Bank of Scotland
and two other banks have begun legal proceedings against an
investment vehicle owned by Dubai’s ruler, an unprecedented move
to secure repayment after two years of unsuccessful debt talks.
RBS, along with German lender Commerzbank and
South Africa’s Standard Bank, had threatened legal
action after walking away from negotiations over Dubai Group’s
$10 billion debt pile, sources said in July.
The banks began legal proceedings in a London court last
Thursday, breaking with the precedent in previous restructuring
cases involving Dubai state-linked entities because of the
opaque and untested insolvency system in the United Arab
Emirates.
Continued…
