OutFocus
Update Dubai Crisis - "Nakheel bond to be paid in full"
Dec 14 2009 at 08:56 - GulfNews
gulfnews.com/business/economy/nakheel-bond-to-be-paid-in-...
Dubai Government has authorised the release of $4.1b which will be used to pay Nakheel’s sukuk.
A statement from the Dubai Financial Support Fund said that the government of Abu Dhabi and the UAE Central Bank had provided $10b in support.
Dubai Government is also expected to announce legal steps which will allow Dubai World to restructure completely.
The statement also added that the UAE Central Bank would provide support for local banks.
The news comes on the same day that Nakheel's $4 billion (Dh14.6 billion) sukuk had been due to mature. It had originally asked for a deferment on payment of the bond on November 25.
A statement from Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal Committee said: “The Government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World.
“As a first action for the new fund, the Government of Dubai has authorized $4.1 billion to be used to pay the sukuk obligations that are due today."
He added that the remaining funds will also "provide for interest expenses and company working capital through April 30, 2010" but only on the condition that Nakheel negotiates a standstill on it's future debt repayments.
Dubai World welcomed the support, saying that it provides "Funding and a stable basis for the restructuring process which continues."
A statement added that: "Dubai World will continue to work with financial creditors to negotiate a standstill in an orderly way. As long as a standstill is successfully negotiated, Dubai World has assurances that the Government of Dubai, through the DFSF, will provide financial support to cover working capital and interest expenses to ensure the continuity of key projects.
"Dubai World is committed to regular, direct and timely communications which it believes will yield the best outcome for all stakeholders."
Dec 10, 2009 at 16:28 - Media spread 'blind panic' about Dubai debt - MAKTOOB BUSINESS
(business.maktoob.com/20090000405938/Media_spread_blind_pa...)
9 Dec, 2009 Emirates News - Four Major Banks have agreed the reschedule payment of Dubai World.
Dec, 2009 GulfNews - Dubai World 'independent'
gulfnews.com/business/economy/dubai-world-independent-1.5...
November 27, 2009 CNN - Dubai debt woes 'a drama, but no crisis'.
By Hilary Whiteman,
edition.cnn.com/2009/BUSINESS/11/27/dubai.world.debt/index.html
Update Dubai Crisis - "Nakheel bond to be paid in full"
Dec 14 2009 at 08:56 - GulfNews
gulfnews.com/business/economy/nakheel-bond-to-be-paid-in-...
Dubai Government has authorised the release of $4.1b which will be used to pay Nakheel’s sukuk.
A statement from the Dubai Financial Support Fund said that the government of Abu Dhabi and the UAE Central Bank had provided $10b in support.
Dubai Government is also expected to announce legal steps which will allow Dubai World to restructure completely.
The statement also added that the UAE Central Bank would provide support for local banks.
The news comes on the same day that Nakheel's $4 billion (Dh14.6 billion) sukuk had been due to mature. It had originally asked for a deferment on payment of the bond on November 25.
A statement from Shaikh Ahmad Bin Saeed Al Maktoum, Chairman of the Dubai Supreme Fiscal Committee said: “The Government of Abu Dhabi has agreed to fund $10 billion to the Dubai Financial Support Fund that will be used to satisfy a series of upcoming obligations on Dubai World.
“As a first action for the new fund, the Government of Dubai has authorized $4.1 billion to be used to pay the sukuk obligations that are due today."
He added that the remaining funds will also "provide for interest expenses and company working capital through April 30, 2010" but only on the condition that Nakheel negotiates a standstill on it's future debt repayments.
Dubai World welcomed the support, saying that it provides "Funding and a stable basis for the restructuring process which continues."
A statement added that: "Dubai World will continue to work with financial creditors to negotiate a standstill in an orderly way. As long as a standstill is successfully negotiated, Dubai World has assurances that the Government of Dubai, through the DFSF, will provide financial support to cover working capital and interest expenses to ensure the continuity of key projects.
"Dubai World is committed to regular, direct and timely communications which it believes will yield the best outcome for all stakeholders."
Dec 10, 2009 at 16:28 - Media spread 'blind panic' about Dubai debt - MAKTOOB BUSINESS
(business.maktoob.com/20090000405938/Media_spread_blind_pa...)
9 Dec, 2009 Emirates News - Four Major Banks have agreed the reschedule payment of Dubai World.
Dec, 2009 GulfNews - Dubai World 'independent'
gulfnews.com/business/economy/dubai-world-independent-1.5...
November 27, 2009 CNN - Dubai debt woes 'a drama, but no crisis'.
By Hilary Whiteman,
edition.cnn.com/2009/BUSINESS/11/27/dubai.world.debt/index.html