• Dubai to Rise From Debt in 5-8 Years
    13 replies, posted
[URL]http://www.reuters.com/article/idUSLDE62M1L020100323[/URL] [quote] DUBAI, March 23 (Reuters) - Debt-laden Dubai World [DBWLD.UL] will present plans to restructure its $26 billion debt pile to creditors this week, with details emerging as soon as Wednesday, sources familiar with the talks told Reuters. The conglomerate, which has been locked in talks with its creditors, will discuss how it plans to repay its commitments with an informal bank panel, which represents 97 creditors to the state-owned conglomerate, in Dubai. "People will be looking for anything not already priced in (the market) such as a government guarantee," said Robert McKinnon, ASAS Capital's chief investment officer. The debt is linked mainly to Dubai World's property units, Nakheel [NAKHD.UL] and Limitless World. The company ringfenced other key assets, such as ports operator DP World ([URL="http://www.reuters.com/finance/stocks/overview?symbol=DPW.DI"]DPW.DI[/URL]), from the restructuring. Talks have tested the tolerance and positions of both sides with early reports floated about a "haircut", or loss, as large as 40 percent, while bankers have countered with demands for nothing less than full repayment. A final proposal on the debt could involve tranches with different repayment profiles, one with a repayment over three to five years with the principal discounted, and another with repayment over seven to nine years with no discount. [ID:nLDE62920A] The eventual proposal will centre on the extension of maturities with low or zero interest, and the option of an early exit at a discount or eventual repayment over a longer period of time. "We now expect much better scenarios, an extension of the maturity date giving domestic banks some breath," said Rami Sidani, head of MENA at Schroders Investments. He said a haircut would have had a "severe impact" on domestic banks and leave them in need of a capital injection from the UAE central bank. Moody's estimated local banks have $15 billion in exposure to Dubai World. The quality of the offer rests with Abu Dhabi, Dubai's wealthier and larger neighbour, which bailed the emirate out late last year. "It looks very much like the main scenario of Abu Dhabi bailout is taking shape," said David Butter, director for Middle East and North Africa, Economist Intelligence Unit. "I doubt that we will ever be able to get an authoritative figure on it, but the bottom line is that Abu Dhabi seems to have decided that it has to pay whatever is necessary to avoid serious reputational damage for the UAE as a whole." A Dubai government spokeswoman said on Tuesday that meetings with the core creditor committee, known as CoCom, were part of "an ongoing dialogue related to the restructuring process". The spokeswoman said Dubai remains on track to present a formal proposal to creditors in March. The panel includes Standard Chartered ([URL="http://www.reuters.com/finance/stocks/overview?symbol=STAN.L"]STAN.L[/URL]), HSBC ([URL="http://www.reuters.com/finance/stocks/overview?symbol=HSBA.L"]HSBA.L[/URL]), Lloyds ([URL="http://www.reuters.com/finance/stocks/overview?symbol=LLOY.L"]LLOY.L[/URL]), Royal Bank of Scotland ([URL="http://www.reuters.com/finance/stocks/overview?symbol=RBS.L"]RBS.L[/URL]), Emirates NBD ENBD.DU and Abu Dhabi Commercial Bank ADCB.AD, which, combined, are believed to have two-thirds of the total exposure. Dubai said in November it would ask creditors to delay repayment on $26 billion in debt linked to its flagship conglomerate Dubai World, sending shockwaves through markets. The last-minute lifeline from Abu Dhabi helped the glitzy Gulf Arab emirate, known for its tax-free earnings and easygoing lifestyle, avert default on a $4.1 billion Islamic bond linked to Nakheel. "For creditors, it would be music to their ears to know that Abu Dhabi is involved in any restructuring plan," said Haissam Arabi, chief executive and fund manager at Gulfmena Alternative Investments.[/quote]tl;dr [quote=http://www.todayonline.com/Business/EDC100326-0000079/Dubai-World-seeks-eight-years-to-repay-debt] DUBAI - Dubai World has proposed to pay its full debt to creditors through the issuance of two tranches of new debt maturing in five and eight years. Creditors, apart from the government's financial support fund which has pumped cash into the troubled group, "will receive 100 per cent principal repayment through the issuance of two tranches of new debt with five and eight years maturities", the company said. AFP[/quote] Dubai is going to be the biggest ghost town :downs:
You could say that they got tranched in.
They shouldnt pay... Im serious
So, is it cheap to go there now? I want to see what its like from the tallest building in the world......
[QUOTE=Ignhelper;20971801]So, is it cheap to go there now? I want to see what its like from the tallest building in the world......[/QUOTE] You mean the next terrorist target?
In my opinion, building a giant oasis in the middle of a hostile and barren desert will never pay off in the end. Nature rules over man.
[QUOTE=Best4bond;20971809]You mean the next terrorist target?[/QUOTE] You mean the building that the terrorists helped to fund?
[QUOTE=andersonmat;20971834]You mean the building that the terrorists helped to fund?[/QUOTE] Yeah because every single Muslim is a terrorist.
[QUOTE=starpluck;20971880]Yeah because every single Muslim is a terrorist.[/QUOTE] [I]Two Days Later...[/I] [IMG]http://www.sydweedon.com/images/murrah_building.jpg[/IMG]
Did you know that the borj tower is empty?
[QUOTE=meppers;20974280]Did you know that the borj tower is empty?[/QUOTE] What the fuck is the "borj tower"? Assuming you mean Burj Khalifa, source?
I can tell you from personally living experience that it is not getting cheaper here. The local people don't seem to understand that they have to lower the cost of housing if they actually want to maintain any kind of business. As a personal example, it was cheaper to live in a much larger/nicer/well kept house in Singapore than to live in a worse house in a shitty area here, as per the monthly rent. And in Singapore, standalone houses are uncommon, and therefore, more pricey.
They better get out of that debt.
Dubai is going to be the [I]coolest[/I] ghost town. Move over, Pripyat.
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