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Dubai World: Silence Despite The Rumors; Steering Committee Formed
It appears that earlier rumors of a Dubai World proposal to creditors for a 60% repayment been have just that, rumors. And unfounded at that. Debtwire reports that in reality nothing has been proposed, and nothing has been discussed.
Dubai World and its various advisors have not discussed debt restructuring terms with the investment group's bank lender or made any related proposals, said two sources familiar with the situation. Dubai World is yet to formally request a standstill from its creditors and the Dubai Financial Support Fund's insistence on super senior treatment for its cash injections is delaying the process, as reported.
Earlier rumors in Bloomberg and elsewhere speculated that creditor options have included a 60% recovery and a seven-year extension, or full recovery which combines Nakheel asset dispositions. It now turns out that that was merely a fishing expedition, attempting to convert speculation into fact.
Speaking of facts, Debtwire provides some relevant ones on just who the critical players in the restructuring process are:
While there is only a de facto Dubai World standstill in place at the moment, there is now a formal steering committee for the company to deal with, as reported. The committee comprises Abu Dhabi Commercial Bank, Bank of Tokyo-Mitsubishi UFJ, Emirates NBD, HSBC, Lloyds TSB, RBS and Standard Chartered, another source familiar with the situation said previously.
Well, now we have confirmation on who stands to lose the most. And here are the vultures who will get paid when the delay game ends:
Rothschild and Deloitte are working on a Dubai World restructuring plan, while AlixPartners is undertaking valuation work. US advisory firm Moelis is advising the Dubai Government [and Thane is very likely milking those Dubai trips, raking up the Burj points]. The list of businesses to be excluded form the Dubai World debt restructuring includes Infinity World Holding, Istithmar World and Ports & Free Zone World, which in turn includes DP World, Drydocks World, Economic Zones World, P&O Ferries and Jebel Air Free Zone.
And with this (lack of) news, we expect Dubai CDS to hit 700 tomorrow.
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Sell the rumour, cover the news.
How in the hell do they get to exclude all the good shit from the debt anyway? Which crack smoking wiseasses decided that loans on ring fenced collateral (and offshore plam tree islands built by slaves at that) in Dubai was a hot idea? The mind boggles at the shit we were all buying a few years back.
Anyway, if I were Dubai, I'd take every panic over Greece to screw my creditors over with rumour after rumour. islands slipping into the sea (which they denied the other day), 60% recovery, the lot.
After all, if they were dumb enough to buy the dream, they'll be quick enough to sell the nightmare.
This will blow up big time
Read this:
http://www.bloomberg.com/index_americas.html/?b=0-....
A Dubai trial balloon. Offer 60% and see if there
is interest. Real offer to be less.
This is what the Economist termed as: " you have been dishdashed"
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