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"You never want to see these things go to court. But that's certainly an option," an official at one of the company's lenders said. The official spoke on condition of anonymity because the talks are private. Dubai Group is part of a conglomerate known as Dubai Holding. It owns property in the United States and has sizable stakes in several financial companies, including regional bank EFG-Hermes and Europe's Marfin Popular Bank. Dubai Group first disclosed that it needed to begin debt talks with creditors in late 2010. It initially sought to hammer out revised terms on $6 billion of debt, but later it acknowledged a higher figure of $10 billion. Dubai, the Middle East's commercial hub, shocked world markets in late 2009 when its debt challenges came to a head after years of breakneck growth. Concerns initially centered on the government-owned Dubai World conglomerate, but unsustainable debt loads at other state-linked companies quickly emerged. Dubai World signed an agreement with creditors to repay $25 billion worth of loans in March last year. Some Dubai companies have managed to arrange smaller restructuring packages of their own, though others are still locked in talks with creditors. Unlike government-owned Dubai World, Dubai Group and its parent are personally controlled by the city-state's hereditary ruler, Sheik Mohammed bin Rashid Al Maktoum. That means cases involving them are not eligible to be heard in a special tribunal established in 2009 to deal with legal challenges involving Dubai World debt.
[Associated
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