RBS walks out of Dubai debt talks
The walkout by RBS, German lender Commerzbank and South Africa’s Standard Bank could prevent a deal for the entire restructuring just as an initial agreement is about to be circulated to other banks.
The three banks were said to be demanding immediate payment, unprecedented in an emirate where banks have tended to take the best terms on offer due to an opaque legal system and to avoid jeopardising chances of winning future business.
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Hide AdRBS had been co-chair of the creditor committee representing the three banks, the largest of the groups negotiating with Dubai Group, a unit of Dubai Holding, the personal investment arm of Sheikh Mohammed bin Rashid al-Maktoum.
A spokeswoman for RBS confirmed it had given up its role on the creditor committee. “This decision was not taken lightly as RBS has a strong track-record of supporting restructures in the region, but a number of factors beyond our control have led us to consider other options in this case,” she said.