Dubai World document reveals price of failure, UAE Conglomerates, Industry - Maktoob Business

Dubai World warned that lenders, aside from the government's own support fund, would face a "significantly" worse deal if its debt plan fails and it is forced to seek liquidation, according to the debt restructuring plan outlined to bankers on Thursday.

The document seen by Reuters also said the repayment of an initial $4.4 billion, five-year debt tranche would be financed by its Istithmar World portfolio and its Infinity investment -- two segments that were ringfenced from the conglomerate's debt proposal agreed by a core group of bankers in May.

Infinity, which dropped plans to develop an island dedicated to fashion after the property market collapse, is in a joint venture with MGM Resorts International. Dubai World bought a 9.5 percent stake in MGM in 2007.