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
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
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.