The Dubai World debt saga is finally about to end. At least so the troubled conglomerate would have us believe, after claiming support from a majority of creditors for restructuring the billions of dollars it owes them. Read our coverage here.
Admittedly the claim came a day after the deadline late last week for Dubai World’s senior creditors to accept a lock-up agreement. But, still, Dubai’s powers that be clearly reckon the development warrants celebration and they may be right, at least in the near term.
The local stock market rallied 2.4% Monday. But it’s still down more than 22% since the end of November when Dubai World initially shocked global markets by announcing the freezing of its debts. Dubai’s government has said creditor support for Dubai World’s restructuring plan would be a key step towards putting the company on a sound and stable financial footing. But neither the emirate itself nor its other big companies can be said to be there yet.
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