Thursday, 4 March 2010
Troubled Dubai World unit Nakheel's 2010 bond prices indicate that investors have ruled out full repayment, with a deep discount or radical restructuring the most likely options, analysts said.
Dubai surprised global markets with the depth of its debt problems in November, then again a month later when it paid in full $4.1 billion of Nakheel's debt. This time around, however, investors do not expect any pleasant surprises.
"The market is expecting a restructuring from Nakheel. They are not really expecting a 100 percent redemption," said Mohieddine Kronfol, managing director at Algebra Capital in Dubai.