"Following a detailed review of the Group's liquidity and capital structure, Dubai World has concluded that it should immediately consider alternatives in respect of the debt obligations of certain entities within the Group," it said.
For a recap, Dubai World incurred a total debt of 60billion and Dubai has also incurred debts due to the borrowing of billions of dollars over the past few years in an effort to fuel the extravagant construction boom, of which includes Dubai World.
As you guys would have expected, the shares of Dubai has plummeted by 7% for the first day and another 5.6% the second day.
Real-estate shares in Dubai dropped 9.2%, leading the market lower. Financial stocks fell 7.5%, while utilities dropped 6.4%, according to the Web site of the Dubai Financial Market.
Okay, now that I have reported the data and all the dropping of stocks and stuff.
What's the solution then ?
Dubai World said late Monday it's holding "constructive" discussions with its creditors to restructure about $26 billion of debt, of which about $6 billion is related to Nakheel's Islamic bonds known as sukuk. Dubai World's total liabilities are estimated at $60 billion.
The restructuring involves Dubai World and its Nakheel and Limitless subsidiaries, both real-estate developers.
Credits -marketwatch, -thevinylvillage, -horman
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