DIC replaces chief executive

The Dubai-backed private equity outfit has reached agreement over key financial terms with its creditors amid a shakeup in its senior management.

Dubai International Capital, the private equity investment arm of Dubai Holding, has elevated David Smoot to the chief executive role as former Anand Krishnan retires, according to a statement.

David Smoot

Smoot had been the firm's chief investment officer, and joined only two years ago from Morgan Stanley when DIC shifted its focus from investing to portfolio management.

The firm has also made peace with a majority of its creditors over roughly $2.5 billion in debt payments. The firm had been responsible for  accruing nearly one-third of the some $12 billion in debt that parent company Dubai Holding owed creditors, according to earlier media reports.

A committee negotiating on the behalf of DIC's lenders, who together hold 67 percent of the debt value, has recommend the wider lending group to accept a debt extension plan for up to 6 years, with $2 billion of the loans to receive a two percent cash interest coupon in exchange.

Assets DIC purchased during the credit boom include the £700 million (€824 million; $1 billion) acquisition of British engineering firm Doncasters Group and the £675 million purchase of Travelodge, a UK-based budget hotel chain.