Dubai World, the government-owned conglomerate, has appointed the New York investment bank Blackstone to thoroughly review its strategy for disposals and debt repayment.
Dubai World, whose debt problems sparked the 2009 financial crisis in the emirate, feels the need for a "fresh pair of eyes" on its debt situation, according to one person familiar with the situation. A spokesman declined to comment.
A spokesman for Blackstone in New York confirmed that DW had hired the firm on a “debt optimisation mandate” but declined to comment further.
In 2010 the company reached agreement with creditors over the terms of US$25 billion of debt.
Part of the settlement involved Dubai World repaying about $4.4bn next year, with another tranche of about $10bn falling due in 2018.
Mohammed Al Shaibani, the chief executive of the Investment Corporation of Dubai and a leading architect of Dubai’s financial recovery, said this week that Dubai World would meet next year’s deadline, and had already repaid about $284.5 million of its borrowings ahead of schedule.
Blackstone, quoted on the New York Stock Exchange, is one of the leading investment advisory businesses.
One of its specialities is corporate restructurings and reorganisations. Blackstone is also experienced in property investment. Some of Dubai World’s remaining big assets are in US property.
Dubai World creditors met for their annual meeting with the company yesterday in Dubai. Media was not allowed to attend the event and no statement was issued.
However, the company is believed to be happy with the rate of disposals and repayments so far. In the past few months, it has sold two hotel interests, the Fontainebleau in Miami and the Atlantis resort in Dubai. Earlier, it disposed of the international logistics business Gazeley.
No sums were disclosed for these disposals, but it is believed that about $1bn of assets have been sold in total so far.
One Dubai banker said the appointment of Blackstone would involve a “review of debts, rather than a restructuring”. There has been speculation that Dubai World might need to again restructure the 2018 element of its liabilities.
Rothschild advised Dubai World on the negotiations in 2009-10. Since then, Dubai World has used various advisory firms for specific disposals.
fkane@thenational.ae
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Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
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Company%20profile
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THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
Grand slam winners since July 2003
Who has won major titles since Wimbledon 2003 when Roger Federer won his first grand slam
Roger Federer 19 (8 Wimbledon, 5 Australian Open, 5 US Open, 1 French Open)
Rafael Nadal 16 (10 French Open, 3 US Open, 2 Wimbledon, 1 Australian Open)
Novak Djokovic 12 (6 Australian Open, 3 Wimbledon, 2 US Open, 1 French Open)
Andy Murray 3 (2 Wimbledon, 1 US Open)
Stan Wawrinka 3 (1 Australian Open, 1 French Open, 1 US Open)
Andy Roddick 1 (1 US Open)
Gaston Gaudio 1 (1 French Open)
Marat Safin 1 (1 Australian Open)
Juan Martin del Potro 1 (1 US Open)
Marin Cilic 1 (1 US Open)
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
Price, base / as tested From Dh173,775 (base model)
Engine 2.0-litre 4cyl turbo, AWD
Power 249hp at 5,500rpm
Torque 365Nm at 1,300-4,500rpm
Gearbox Nine-speed auto
Fuel economy, combined 7.9L/100km
