Fresh funds may put a dent in Dubai World's debts.
Dubai's government today said it has received US $10 billion (AED36.7 billion) in financing from Abu Dhabi, some of which will be used to pay off Dubai World’s and its property unit Nakheel’s debt, according to Dow Jones.
"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," the Dubai government said in an emailed statement.
The remainder of the funds will be used "for the satisfaction of obligations to existing trade creditors and contractors", it said. Discussions with affected contractors are expected to begin shortly.
Dubai government also said it will introduce a reorganisation law to ensure greater transparency and creditor protection. The law will be available if Dubai World and its subsidiaries are unable to achieve an acceptable restructuring of its remaining obligations, it said.
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FEATURED COMMENT
An excelent & timely gesture of "ETTIHAD" ( Unity & Care )from elders towards youngers in the Emirates by authorization
RAFI AHMED (Dec 14, 2009) DUBAI United Arab Emirates
ABUDHABI FINANCIAL ASSISTANCE TO DUBAI IS ..............
An excelent & timely gesture of "ETTIHAD" ( Unity & Care )from elders towards youngers in the Emirates by authorization of such an assisting package, is highly appreciable not only by the big-ones but also the small-ones, and I personally think that such an action should be celeberated by all the citizens in UAE, since it conveys so much care taking attitide towards every-one in the country, directly or indirectly. Long LIFE ABUDHABI & LONG LIFE DUBAI.
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FEATURED COMMENT
An excelent & timely gesture of "ETTIHAD" ( Unity & Care )from elders towards youngers in the Emirates by authorization