Saturday 9 January 2010

Dubai ruler signals confidence in Dubai World head

Dubai's ruler indicated continued confidence on Friday in the chairman of Dubai World [DBWLD.UL], the government-owned conglomerate that is seeking to restructure more than $20 billion in debt.

"Sultan bin Sulayem, chairman of Dubai World, continues to hold his position," the office of the emirate's ruler, Sheikh Mohammed bin Rashid al-Maktoum, said in a statement carried by state media. It did not elaborate.

Dubai World rocked global markets on Nov. 25 when it said it would seek a debt standstill on $26 billion.

The conglomerate staved off a $4.1 billion bond default by its real estate unit, Nakheel [NAKHD.UL], after receiving a $10 billion bailout from the neighbouring emirate of Abu Dhabi, holder of most of the oil reserves of the United Arab Emirates, the world's third largest crude exporter.

In December a banking source said that Dubai World told creditors it would pitch a standstill proposal in mid-January.

A Dubai World spokesperson said last month the company was aiming to have a restructuring plan in place by April.END

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