Dubai Defaults

worldtraveller

Investors switched their attention to the Gulf yesterday as markets reacted to fears that a restructuring plan from the state-owned conglomerate Dubai World would pay creditors only 60 per cent of the money they are owed.

With sovereign debt fears high after Europe's leaders failed to detail a bailout for Greece last week, the reports of Dubai World's limited repayment plans added fuel to the fire.

Even though Dubai tried to play down the talk, its stock market fell and the cost of insuring five-year Dubai debt against default, as shown by credit default swap prices, rocketed to its highest level since March.

Debt holders will receive 60 cents for every US dollar loaned to the company after seven years guaranteed by the Dubai government with no interim interest payments, sources close to the plans told the Zawya Dow Jones news service. Alternatively, creditors could receive full payment over the same period, without government support, with 40 per cent of their Dubai World debt given in the form of Nakheel assets, the parent company's property business.

A restructuring of Dubai World's $22bn debt, after a six-month standstill unveiled in November, is expected by April.

Sovereign debt worries have given renewed popularity of financial acronyms. Greece's troubles brought the acronym "Pigs" (Portugal, Ireland, Greece and Spain) to fame, but yesterday's events gave fresh license to traders to say "Stupid" (Spain, Turkey, the UK, Portugal, Italy and Dubai).

Independent.co.uk

StevieJ

Generali wrote: »

Wow.

I know enough about horse racing to lose money to the bookie. Was the horse underweight? How did this happen please?

Sorry about not replying Gen, it was simply the best horse ever.

Losing money? you mean you back horses like this.

http://www.youtube.com/watch?v=OiY7WVdcp3Y

Or Dayjur who jumped a shadow.

http://www.youtube.com/watch?v=6GwarAwadn0

To fanciful for a !!!!!! Francis (RIP) thriller

Mr.Brown_4

Was surprised when I was last over there and tried to hand in the keys to my timeshare apartment. (It's on the Isle of White island in the 'World' section if you are interested). After a very brief discussion I was marched to the local jail, stripped naked and flagellated for several days. Then driven to the airport.

Brilliant. I am going back for more of the same in my summer vacation.

sabretoothtigger

I dont normally watch horses but that was quite a run, dont they normally stick with each other like wild horses might run together?

What average speed would 2:24 equate to, Im not sure what distance they run

nearlynew

Dubai is a vulgar monument to greed and stupidity.

Built on sand and fuelled by debt.


May the fleas of a thousand camels infest the testicles of all who "invested" there.

sabretoothtigger

why would that make it any worse then any other capital city, because they are new money?

sabretoothtigger

That was quite a burst of speed, my favourite horse race was this one :

http://www.youtube.com/watch?v=NQSkmsFCjSA




Secretariat ran an average 37.3 mph

StevieJ

sabretoothtigger wrote: »

I dont normally watch horses but that was quite a run, dont they normally stick with each other like wild horses might run together?

What average speed would 2:24 equate to, Im not sure what distance they run

Distance is 1.5 miles same as English Derby.

The race that really melts european hearts involved a French horse called Arazi, drawn on the ouside 14 in the Breeders cup juvenile and racing on lasix for the first time, it still sends shivers down my spine

http://www.youtube.com/watch?v=haI7VOcFqo4&feature=related

http://www.youtube.com/watch?v=spW6D1VB0hU

It dazzles the senses, if a horse is drawn wide he more or less gives a few lengths start in addition Bertrando was the champion US juvenile. One moment he is last the next he is on the shoulder of the leader.

StevieJ

sabretoothtigger wrote: »

That was quite a burst of speed, my favourite horse race was this one :

http://www.youtube.com/watch?v=NQSkmsFCjSA




Secretariat ran an average 37.3 mph

worldtraveller

Troubled government-owned investment conglomerate Dubai World said Friday it has over 99% support among creditors for its proposal to restructure around $24.9 billion of debt.

The announcement comes after a deadline expired Thursday for Dubai World's senior creditors, holding around $14 billion in debt, to accept a lockup agreement.

In a statement, the government of Dubai said it was pleased with the outcome. Sheikh Ahmad Bin Saeed Al Maktoum, chairman of the Dubai Supreme Fiscal Committee, said the agreement "formalizes a strong consensus around a fair and balanced restructuring proposal."

It is a "key step towards putting Dubai World on a sound and stable financial footing whilst enabling it to realize the full potential of its underlying businesses," the statement said.

The company said the support meant the restructuring proposal could be closed in the coming weeks. The plans include selling assets to raise more than $19 billion to repay creditors.

The Wall Street Journal