State-run Dubai World, which stunned the global financial markets with a debt restructuring announcement last week, Tuesday said only some subsidiaries were in financial trouble and that it would expedite the process to restructure the $26 billion owed by these entities.
State-run Dubai World, which stunned the global financial markets with a debt restructuring announcement last week, Tuesday said only some subsidiaries were in financial trouble and that it would expedite the process to restructure the $26 billion owed by these entities.
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"The proposed restructuring process will only relate to Dubai World and certain of its subsidiaries including Nakheel World and Limitless World," the conglomerate said in a statement.
"The total value of debt carried by the companies subject to the restructuring process amounts to approximately $26 billion, of which approximately $6 billion relates to Nakheel."
Dubai World said the restructuring process would not affect subsidiaries such as Infinity World Holding, Istithmar World and Ports and Free Zone World (which includes DP World, Economic Zones World, P&O Ferries and Jebel Ali Free Zone), "all of which are on a stable financial footing".
Both Nakheel World and Limitless World are the real estate development arm of the group with the latter having projects around the globe.
The global financial world went into a tizzy last week after Dubai World said it would need to restructure its debt, estimated at $59 billion.
The conglomerate, which has a host of companies under its fold, has interests in a wide range of businesses such as realty, infrastructure, logistics and economic zones, not just in the region but across a clutch of countries including India.
"It is envisaged the restructuring process will be carried out in an equitable way for the overall benefit of all stakeholders and will comprise several phases including long-term plans and commitment of stakeholders."
The restructuring process will also assess profits, cash generation and funding requirements apart from restructuring proposals to creditors, the group's statement said.
"Initial discussions have commenced with the banks of Dubai World and are proceeding on a constructive basis," it added.
Benchmark indices in the US rose Monday after the announcement, though they tapered off by end of trade. Asian markets also responded favourably with a key Japanese index, the Nikkei, ruling 2.43 percent or 226.65 points up at 9,572.2 points Tuesday.
The Hang Seng, a benchmark index of the Hong Kong Stock Exchange, was at 22,018.86 points, 0.9 percent or 197.36 points higher.
The Kospi, the benchmark index of the Korean Stock Exchange, was at 1,569.72 points, up 0.91 percent.
In China, the Shanghai composite index was trading 1.07 percent up at 3,229.53 points.
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