Dubai World sheds property arms; names new CFO, MD
Ownership for Nakheel, Limitless transferred to Dubai govt; Andy Watson new managing director, Junaid Rahimullah CFO; Company says moves conclude restructuring
July 6, 2011 3:53 by Eva Fernandes
Indebted conglomerate Dubai World shifted ownership of its troubled property units Nakheel and Limitless to the government, concluding a complex restructuring process, it said on Wednesday.
The state-owned flagship firm also named Andy Watson as managing director and Junaid Rahimullah as chief financial officer.
The two property divisions have operationally and financially been separated from Dubai World, according to a statement.
Nakheel, builder of man-made palm-shaped islands, and Limitless were at the center of Dubai’s property-collapse inspired debt crisis in 2009.
The former has yet to complete its $10.9 billion debt restructuring, which ran alongside that of the parent company. Shifting Nakheel to the Dubai government was part of Dubai World’s debt restructuring proposal.
Dubai World signed a final agreement with creditors to restructure $24.9 billion in debt in March.
Limitless, which once attempted to build a 75-kilometre inland waterway called the Arabian Canal, was excluded from Dubai World’s restructuring plan, unveiled in March last year.
The developer, which was a vehicle for most of Dubai World’s overseas property investments, has rolled over a $1.2 billion loan owed to one syndicate of banks several times. (Reporting by Praveen Menon; Editing by Amran Abocar)