Dubai World said it began “constructive” talks with banks to restructure $26 billion of debt, including liabilities owed by units Nakheel World and Limitless World.
Debt from subsidiaries such as Infinity World Holding, Istithmar World and Ports & Free Zone World will be excluded from the negotiations because those companies “are on a stable financial footing,” Dubai World, one of the emirate’s three main state-related holding companies, said in a statement.
The company is seeking to delay payments on less than half its $59 billion of obligations, damping concern that a potential default may set back the global financial system’s recovery from the credit crisis. Stocks erased losses in the U.S. after the Dubai World statement, sending the Standard & Poor’s 500 Index up 0.4 percent.
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