The latest on Dubai World. Yawn.
Dubai World is signing its deal with its last creditor next week – whoopee! Wait; weren’t we excited about this five months ago, when we first heard about the completed debt restructuring?
March 10, 2011 3:15 by Eva Fernandes
Dubai World, if you have been living under a rock (a really big one), announced a standstill on all debt repayments in November 2009. Many expected that the conglomerate would default on its $24.9 billion debt, but a month later Abu Dhabi injected $10 billion into the Dubai Financial Support Fund, and the UAE Central Bank pumped in $10 billion too. Soon negotiations began about restructuring (along with constant reports of how many creditors agreed). By May, Dubai World announced that it had reached an agreement with its core group of creditors, with more and more agreements to follow. By October, Dubai World announced that all of its creditors were on board with the $24.9 billion debt restructuring.
And so the signing began-which brings us back to today, when Sheikh Ahmed told reporters the last deal with Dubai World creditors is to be signed. You see, that’s why we feel like we’ve heard this before – first they agreed it all (which we covered), then they signed it (which we’ve now covered).
Perhaps one of the more interesting aspects of the most recent news was a suggestion by Sheikh Ahmed that Dubai World is not considering selling its assets anytime soon. “There is no pressure on us for sale of Dubai World assets (…) We have a period of eight years. Always the question is asked, is an asset up for sale. Anything can be sold if the offer is good and tempting,” he said.
Okay, so it might not exactly be earth-shattering news, but it’s got to be better than the never ending saga of look-how-many-creditors-have-signed-and-agreed-with-us-so-far, so we thought we’d go with it.
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