LONDON Nov 25 Dubai's government on Wednesday said it will ask creditors of two of its flagship companies -- Nakheel and Dubai World -- for a debt standstill.
Following is the government's statement on the matter:
The Government of Dubai, acting through the Supreme Fiscal Committee ("SFC"), has authorised the Dubai Financial Support Fund ("DESE") to spearhead the restructure of Dubai World with immediate effect.
The process has begun with the appointment at the direction of the DFSF of a Chief Restructuring Officer (CRO), Aidan Birkett, Managing Partner, Corporate Finance at Deloitte LLP, to Dubai World. The CRC will work with Dubai World's executive management team to oversee the restructuring process and ensure the continuity of Dubai World's operations.
Dubal World has a portfolio of strategically important businesses and the restructuring will be designed to address financial obligations and improve business efficiency for the future.
The DFSF, working with the CRO, will start to assess and evaluate the extent of the restructuring required. As a first step, Dubai World intends to ask all providers of financing to Dubai World and Nakheel to "standstill" and extend maturities until at least 30 May 2010.
The $5bn bond announced earlier today by the Dubai Department of Finance and managed by the DFSF is not linked to the restructuring of Dubai World and is meant for the general purposes of the DFSF.
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