Dubai World announced credit plan

25/08/2010 - Dubai Investment News
Dubai World announced credit plan

Dubai World, a businesses conglomerate owned by the emirate's government, has developed plans to sell off some of its assets.

The eight-year plan will see the assets offloaded in a bid to raise more than AED19 billion in order to pay off various creditors, according to an unnamed source.

Zawya Dow Jones reported that the source claimed the group will sell a number of assets currently held by its real estate arm Nakheel.

According to the insider, assets held by the Istithmar part of the group will also be sold as part of an AED23.5 billion debt restructure.

A Reuters report earlier this week stated that the state-owned group, which controls a number of investments including luxury hotels, theme parks and ports, had told creditors that the capital structure was in "urgent" need of addressing.

Earlier this month, the group also posted "encouraging" results for its portfolio of marine terminals.

The group reported a growth of five per cent, which it attributed to the return of container volume growth across the portfolio in the first half of the year.

Posted by Neil King