The Dubai government has walked away from talks about a $10 billion debt restructuring of Dubai Group, leaving the firm, part of the ruler of the emirate's personal empire, to deal directly with creditors and dashing hopes of a state-backed rescue.
Dubai's Supreme Fiscal Committee (SFC), the high-level group that oversaw Dubai's finances during the 2009 debt crisis and is headed by the ruler's uncle, had been helping Dubai Group address debt issues that have left interest unpaid for more than a year.
But in a letter this week, Dubai Group told the banks' committee of unsecured creditors that the SFC had ended its involvement in negotiations, and that no financial support would be coming from the government, according to two sources who have seen the letter.
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