Six months is too short to restructure the debt of Dubai World and the company could be forced to sell some of its overseas assets to reduce its debt mountain, Dubai's finance chief said this morning.
Abdulrahman al-Saleh, Dubai's finance minister, told Al Arabiya televison that the Dubai Government would support the state-controlled conglomerate “as an owner” in repaying $60 billion (£36.5 billion) in debts but that it would not sell off government assets.
Mr al-Saleh said that it was too early to discuss cash injections into Nakheel, the group’s property developer. The six-month period would focus on sorting out the debt of Dubai World, he said.
"The main goal of the restructuring of Dubai World is to ensure the continuation of its operation as a viable commercial entity. The question is the future of the company," UAE news sources quoted the finance minister as saying.
The Dubai Financial Market fell 6.5 per cent this morning to a five-month low. The index has fallen by 22 per cent since the group requested a six-month extension on its debt repayments two weeks ago.
Dubai World met its six main creditors, including four British-listed banks, on Monday to discuss its request to delay repayment of $26 billion but no deal has yet been announced.
Dubai World owns a 20 per cent stake in Cirque du Soleil, the Canadian circus, as well as other assets including P&O. the ferry operator; Barney's, the luxury retailer in New York, and the QE2 liner.
Source: timesonline.co.uk
Tuesday, December 8, 2009
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I agree with you that six month's duration is too short to restructure the Dubai debt and Dubai government should make a policy about it!
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