Posted on 11/30/2009 6:23:02 AM PST by TigerLikesRooster
Investors face huge losses as Dubai abandons debt company
Dubai has brought in Deloitte, the accountancy firm, to help restructure Dubai World
David Robertson
The Government of Dubai said today that it will not stand behind its wholly-owned subsidiary Dubai World, prompting fears that the company’s creditors could lose billions of dollars.
Today's comment, from Abdulrahman al-Saleh, the director general of Dubai’s Department of Finance, effectively confirms that country does not have enough money to repay Dubai World’s $60 billion of liabilities. Deloitte, the accountancy firm, has been called in to restructure the giant business.
Last week, the state-owned conglomerate sought a six-month standstill on repaying its debts.
Dubai World's borrowings include a $3.5 billion Islamic bond that was due to be repaid by Nakheel, the property developer behind the Palm Jumeriah islands, in two weeks.
Many creditors had assumed that the structure of Islamic bonds implied there was state backing for this type of financing and Dubai’s failure to support the Nakheel debt could have damaging implications for the wider Islamic market.
UK banks are among 70 institutions to have loaned Dubai World money in recent years as the company grew rapidly and bought foreign assets such as the Turnberry golf course in Scotland and P&O ports. Dubai's Department of Finance said creditors will be affected in “the short term” by the Dubai World's restructuring.
(Excerpt) Read more at business.timesonline.co.uk ...
Ping!
Anyone we know? Is there any public listing of the Big Money Losers?
Well, that’s what happens when ya have a country that doesn’t produce much, and whose economy is based on a real-estate bubble largely financed with foreign debt...
Good thing we live in America, where things like that just don’t happen...
Oh, wait...
Never mind....
Stimulus package being drawn up in Washington, THIS is too big to fail....
And how many of the management will go with him?
Zoiks! This is going to hurt Arab financing going forward...well at least until the next generation of dupes comes of age.
As nasty a bit of a Euro-trash elitist as has ever been.
Dubai had too many Palm trees any way
Second question: Why are Chinese troops marching around here? < /sarc, for now at least>
Investors face huge losses as Dubai abandons debt company
Oooops... time to bail and bail quickly... :-)
We'll find out if Goldbag Sachs had been on the hook when the trucks full of cash leave the treasury and drive to New York again.
Citi is the big one. They gave Dubai a loan days after they recieved TARP money.
There used to be a website called
www.tigerwoodsdubai.com
but it's shut down now.
Sometimes investments just don’t work out. A savvy investor would know this, and invest accordingly.
....so far Wall Street is taking this in stride...the DOW is down 18 points in early trading....not bad considering.
What a bunch of dumb@ss infidel investors...
At least the world will start to understand what "islamic investing" is all about.
Considering when the news hit the DOW fell hundreds, before gaining in negative territory, then CLOSING the DOW early, because? Black Friday. They didn’t want shoppers spooked.
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