Pressure grows on overseas assets of conglomerate's equity arm

Istithmar, the private equity arm of Dubai World, the debt-laden conglomerate, is coming under increasing pressure from creditors as it loses control of key assets and breaches loan covenants.

Spurred by its ambitious parent company, the private equity firm went on a multi-billion dollar acquisition spree, snapping up assets such as Barneys, the New York retailer, the Queen Elizabeth II ocean QE2 cruise liner, Cirque du Soleil and trophy real estate in London and New York.

Other investments range from the Grand Buildings in Trafalgar Square, London, to the Mandarin Oriental hotel in New York.