Dubai World to meet lenders over debt restructuring

DUBAI: Dubai's heavily-indebted group, Dubai World, will hold talks on Monday with its creditors to reach an agreement over its request to restructure 22 billion dollars in debt, local media reported.
 
Representatives of at least 90 creditors will be taking part in the Dubai meeting, with the first aim being to name a coordinating committee to represent the creditors, The National newspaper said.

Dubai World’s banks expect formal standstill request

LONDON: Bankers expect Dubai World to make a formal request for a standstill on its $26 billion debt at Monday’s creditor meeting, but it could be more than a month before banks agree, bankers said on Friday.

Banks are expected to support Dubai World’s request, but what happens next will depend on the information they receive about the health of its finances, as the scale and complexity of the restructuring and its political overtones put creditors in uncharted territory.

Dubai stocks still sliding as debt crisis ‘spreads’

DUBAI: Dubai share prices were battered again in Wednesday trading, falling 6.48 per cent as the Financial Times reported the Gulf emirate is struggling to halt the spread of an alarming debt crisis.
 
The Dubai Financial Market’s main index was trading down 106.12 points at 1,531.93 shortly after midday (0800 GMT), while the Abu Dhabi Securities Exchange had lost 2.41 per cent to be at 2,477.65 points.

‘The credit downgrades of Dubai’s government-owned companies have triggered an accelerated payment clause on a 2.0-billion-dollar debt issued by the emirate’s utilities provider,’ said a front-page report in the Financial Times.

Nakheel makes $3.65bn H1 loss

Wednesday, December 09, 2009
DUBAI: Troubled Dubai property developer Nakheel made a first half loss of 13.4 billion dirhams ($3.65 billion) as revenues fell and it wrote down the value of land and property, according to a report published on Tuesday.Nakheel, whose parent company Dubai World has requested a six-month standstill on Nakheel’s $3.52 billion Islamic bond maturing next week, had made a profit of 2.65 billion dirhams in the year earlier period, Bloomberg News reported. Revenue fell 78 per cent to 1.97 billion dirhams, the news organisation reported, citing first half financial statements. Nakheel and Dubai World officials declined comment.

Dubai’s debt travails

Dubai is in trouble. The pearl of the Persian Gulf whose fame and fortune washed distant shores is suddenly losing its lustre. Dubai World, a major investment company in Dubai and the jewel in the city-state’s crown, has run up an astounding $60bn debt.
 
The conglomerate is unable to meet its scheduled debt repayments and has sought a suspension. So much for its boast that ‘the sun never sets on Dubai World’. Dubai World claims to be one of the largest holding companies in the world, with its investment portfolio spreading across 100 cities and encompassing industries and sectors ranging from ports management, property development, hospitality and tourism, free -zone operations and private equity investment.