Dubai World confirms debt at US$26 billion in clarification

Time:2009-12-07 Browse:14 Author:RISINGSUN

STATE-OWNED Dubai World and its subsidiaries have issued a statement to "update lenders on developments relating to their debt obligations" that amount to a total of US$26 billion, of which around $6 billion relates to the Nakheel sukuk.
The comments come after Dubai World`s earlier announcement of its massive debt sent shockwaves through stock markets around the world, particularly in the Middle East, raising fears that recovery from the global financial economic crisis might suffer a setback.
Dubai World said in the statement that it "has concluded that it should immediately consider alternatives in respect of the debt obligations of certain entities within the group," following a detailed review of the group`s liquidity and capital structure.
It gave assurances that its proposed restructuring process would only affect Dubai World and its subsidiaries Nakheel World and Limitless World, and not Ports & Free Zone World, which includes DP World, Economic Zones World, P&O Ferries and Jebel Ali Free Zone, and neither would the process include Infinity World Holding and Istithmar World, as all of these companies, it said, are on a "stable financial footing."