Even though it was expected from Dubai World’s creditors, the company did not ask for a standstill on its debts in today’s meeting in Dubai. It was the first face to face meeting of Dubai World officials with their creditors after the company asked for an extension on it repayments in November. The meeting presented different options on how to move forward and the questions from the creditors of Dubai World were constructive. To restructure the $22 Billion debt the creditors will form a committee for the next stages of the discussions.
Obviously the bankers don’t want Nakheel or any part of Dubai World to be driven into bankruptcy, which would be even worse. A proper solution at least gives them the chance to get their money back, eventually. The Stock Market in Dubai (DFM) was down at first in the morning but recovered slightly later on in the day once the news spread.
So what do you think? This sounds like good news, at least they did not fight and had a constructive discussion how to settle the whole thing. What is your opinion?
