Monday 21 December 2009

Dubai Shares Drop for Third Day as Banks Meet Dubai World

Dubai stocks dropped for a third day as bankers involved in Dubai World’s debt restructuring said the company wouldn’t be ready to offer lenders a “standstill” agreement on $22 billion in debt.

Emirates NBD PJSC, a Dubai-government controlled lender, tumbled the most in more than a week. Deyaar Development PJSC fell the most in four days. The DFM General Index lost 0.3 percent to 1,827.52 at the close. The index has slumped 13 percent since Dubai World’s debt restructuring announcement on Nov. 25. Abu Dhabi’s benchmark index lost 0.8 percent.

The terms of government support for the state-owned holding company were not agreed upon before today’s meeting, two bankers involved in the talks said before the gathering. The lack of that accord would lead to a delay in making the standstill request, they had said. Dubai World will continue working with creditors to reach a standstill agreement on its borrowing “in an orderly way,” it said in an e-mailed statement after markets closed. The company did not present a “standstill” offer to lenders, a company spokesman said after the end of trading.

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