Dubai World sets for restructuring of debts
The Dubai government is learnt to have expedited its efforts for the restructuring of $22 billion debt of the crisis ridden Dubai World, the state-owned conglomerate. Sources close to the development said that any positive outcome is likely by the end of next month after completing the valuation of the assets of the group by the end of February.
Meanwhile, the Department of Finance has ruled out the possibility of further sale of assets and advised banks to have patience for the Dubai World's portfolio to recover from the financial glitch.
However, an insider told that assets with lower valuation such as the QE2 cruise liner, Barneys, the US luxury retail chain, and the group's stake in Cirque du Soleil can be used to for correcting the balance book of Dubai World.
Istithmar, one of the offshoots of Dubai World, has sold a large number of assets at pretty cheap prices which can be better understood from the sale of W Hotel in Union Square, New York at just $2 million to LEM Mezzanine against its purchase price of $282 million three years ago.
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