Dubai World debt report sees shares tumble
Dubai Financial Market index falls 3.5 percent on news that the troubled conglomerate may only repay 60 percent of debt after seven years.
February 14, 2010 12:01 by kippreport
The Dubai Financial Market index tumbled by 3.5 percent on Sunday, following news that troubled conglomerate Dubai World may only repay 60 percent of its $22 billion debt after seven years.
According to a report by Zawya Dow Jones, the offer will come with a sovereign guarantee of payment over the seven-year period. Another option on the table is a 100 percent payment, but without the guarantee. An offer is set to be presented to creditors in April.
The Dubai Financial Market index led losses in the region, closing down 3.5 percent at 1,617.51. The real estate sector saw the greatest drop, with Emaar Properties shedding 5.88 percent of its value.