Dubai World asks for debt standstill

The Dubai government announced that it is restructuring the Dubai World group and will ask the company’s creditors for a debt standstill.  “Dubai World intends to ask all providers of financing to Dubai World and Nakheel to ’standstill’ and extend maturities until at least 30 May 2010,” a government statement said. Nakheel has a $3.52 billion Islamic bond maturing on December 14.

The government said it appointed Deloitte LLP to undertake the restructuring, which was intended to “address financial obligations and improve business efficiency for the future.”